Despite Covid, HAL earned good revenue last fiscal

Bengaluru, DHNS: Even though the Covid-19 outbreak disrupted economic and industrial operations across the country, Hindustan Aeronautics Limited (HAL) said that it recorded revenue in excess of Rs 22,700 crore (provisional and unaudited) in the recently concluded fiscal year.

The corresponding figure for the previous year stood at Rs 21,438 crore. The company has posted a revenue growth of around 6% in the 2020-21 fiscal year. It cites improved productivity after suspending the operations for one month in the beginning of the year.

The year 2020-21 was significant in terms of securing the largest ever defence contract of 83 LCA MK-IA by an Indian company. This helped the company surpass the order book position in excess of Rs 80,000 crore, said R Madhavan, CMD, HAL.

The record revenue achieved with the help of production of 41 new helicopters/aircraft, 102 new engines, overhaul of 198 aircraft/helicopters and 506 engines.

The company said that the cash flow position has improved significantly with improved budget allocation from defence customers and it stands in excess of Rs 34,000 cr, including advance payment of around Rs 5,400 crore for 83 LCA MK1A contract. This helped HAL to liquidate all its borrowings availed from the banks. The company has ended the year with a positive cash balance of around Rs 6,700 crore as against borrowings of Rs 5,775 crore.

HAL said it has also taken various cost cutting and austerity measures during the year that include indigenisation of various components, increasing outsourcing efforts and rationalisation of manpower which is expected to facilitate the company to register a double digit growth.

Considering the anticipated growth in profits, HAL paid an interim dividend of Rs 30 per share during the current financial year representing 300% on the face value of Rs 10 per share.