The logo of Hindustan Aeronautics Limited is seen on the facade of the company's heritage centre in Bengaluru
Credit: Reuters Photo
India's Hindustan Aeronautics Ltd (HAL) reported a nearly 8 per cent drop in its fourth-quarter profit on Wednesday, weighed by a delay in the supply of its Tejas light combat aircraft.
The fighter jet maker's consolidated profit fell to Rs 3,977 crore ($465.9 mln) in the quarter ended March 31, from Rs 4,309 crore a year earlier.
HAL's revenue was expected to take a hit due to delays in the supply of Tejas Mk 1A light combat aircraft, analysts had said, even as ordering activity in the defence sector remained steady throughout the quarter.
State-owned HAL's quarterly revenue fell 7.2 per cent to Rs 13,700 crore for the March quarter, coming just under Elara Securities' estimates of an 8 per cent fall.
Defence stocks, including HAL, have been under the spotlight since April-end, as India and its neighbour Pakistan engaged in a cross-border conflict following a deadly attack on tourists in Kashmir. HAL has risen 6 per cent since then. Its shares were up 2.6 per cent after the results.
During the quarter, the company bagged orders worth Rs 62,700 crore for the supply of 156 light combat helicopters called 'Prachand'.
Peer Bharat Electronics will report its quarterly results next week.