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Hindustan Aeronautics in focus post PM modi visit and aero India show

ICICIdirect Research 14 Feb 2025 DISCLAIMER

Revenue increased by ~15% YoY, possibly led by healthy execution in RoH (repair & overhaul) segment and few manufacturing contracts (like engines for Su-30 and Mig-29). EBITDA margin remained steady at 24%

As per the management during ongoing Aero India event, company’s order backlog stands at ~Rs 1.33 lakh crore as of Dec 2024 (4.1x TTM revenue) Also, additional contracts worth ~ Rs 1.65 lakh crore are expected to be placed with the company in the next one year (including 97 additional LCA Tejas Mk-1A fighters, 156 light combat helicopters, Sukhoi-30 MKI upgrade etc)

Longer term order pipeline also looks robust considering the large programs like Tejas MK2, AMCA, multi role helicopters, unmanned aerial vehicles, civil aircrafts etc

Management also hopeful of start delivering LCA MK1A aircrafts from March/April after the arrival of engines from GE. With third production line started at Nashik, production capacity will also increase to 24 aircrafts annually

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