- 02 Apr 2024
- ICICI Securities
HAL REPORTED REVENUE GROWTH OF ~11 PERCENT YOY FOR FY24; BETTER THAN EXPECTATIONS
News: Hindustan Aeronautics (HAL) has recorded revenue from operations of over Rs 29810 crores (provisional and unaudited) for FY24E, registering a growth of 10.7% YoY. Company has also reported an order backlog of ~Rs 94000 crore as of Mar-2024 end with an order inflow of ~Rs 35000 crore during the year (manufacturing contracts of ~Rs 19,000 crores and Repair & Overhaul contracts of ~Rs 16,000 crores).
Views: Revenue growth of 10.7% YoY for FY24 is ahead of street expectations and management’s guidance of ~8% YoY growth. Implied revenue growth for Q4FY24 stands at ~14% YoY. We believe that there may be some additional revenue accounting by the company led by recent amendment to the LCA IOC (Light Combat Aircraft Initial Operational Clearance) contract. Also, company has executed promptly the recently received export order of two Hindustan-228 aircrafts (order value of Rs 194 crore). Order backlog of Rs 94000 crore (3.2x FY24 revenue) provides healthy double-digit revenue growth visibility in FY25E & FY26E, led by improvement in overall execution in manufacturing & MRO contracts and start of Tejas MK1A deliveries.
Impact: Positive