Hindustan Aeronautics Limited Q3 Profit Rises 14% YoY

13 Feb 2025 , 05:23 PM

Hindustan Aeronautics’s results for Q3 FY25 show the company delivered a strong performance, with net profit increasing 14% year-on-year to ₹1,432.6 crore from ₹1,253.5 crore a year ago. Consolidated revenue rose 15% Year on Year (YoY) to ₹6,957 crore for the quarter ended December 2023, as against ₹6,061 crore for the same quarter last fiscal, on back of solid operational delivery.

EBITDA increased 17.2% YoY, reaching ₹1,681 crore, and EBITDA margin expanded marginally to 24.2% as compared to 23.7% in Q3 FY24. HAL announced its first interim dividend of ₹25 per equity share for FY25, totaling a payout of over ₹1,600 crore.

The dividend payout will net the Indian government, which owns a 72% stake in HAL, close to ₹1,200 crore. The record date for the dividend is February 18, 2025, and will be paid to eligible shareholders on or before March 14, 2025.

D.K. Sunil, Chairman & MD, had attributed the delays to technical issues, now resolved, and assured deliveries would start soon. After missing the original March 2024 deadline for the induction of LCA Mk1A jets due to issues related to the project, HAL is now in line to deliver 16 of the jets to the IAF in 2025. The firm is to provide 83 Tejas Mk1A jets by 2029, underlining its role in enhancing India’s defense capabilities.

Just a day before the earnings were announced, Indian Air Force Chief Marshal AP Singh had raised concerns regarding the reliability of the state-owned company, saying he had “no confidence” that Hindustan Aeronautics Limited would be able to deliver Tejas Mk1 fighter jets in a timely fashion.