About -
Hindustan Aeronautics (HAL), the largest defence PSU in India, isengaged in design, development, manufacture, repair, overhaul, upgrade & servicing of a wide range of products including, aircraft, helicopters, aero-engines, avionics, accessories & aerospace structures.
Hindustan Aeronautics (HAL), the largest defence PSU in India, isengaged in design, development, manufacture, repair, overhaul, upgrade & servicing of a wide range of products including, aircraft, helicopters, aero-engines, avionics, accessories & aerospace structures.
▪️ Financial Summary -
FY22 (YoY)
Revenue were at ₹ 24630 Cr.⬆️10%
Net Profit at ₹ 5080 Cr.⬆️56%
EPS at ₹ 151.9 Cr.⬆️56%
FY22 (YoY)
Revenue were at ₹ 24630 Cr.⬆️10%
Net Profit at ₹ 5080 Cr.⬆️56%
EPS at ₹ 151.9 Cr.⬆️56%
▪️ Manufacturing locations and R&D centers :
▪️ Strong capabilities across segments :
HAL caters to a large spectrum of aerospace business, which includes manufacturing & maintenance, repair & overhaul (MRO) of the fixed-wing, rotary-wing, aeroengines, line replaceable units (LRUs) & airborne systems.
HAL caters to a large spectrum of aerospace business, which includes manufacturing & maintenance, repair & overhaul (MRO) of the fixed-wing, rotary-wing, aeroengines, line replaceable units (LRUs) & airborne systems.
Apart from the indigenous designed aircraft/helicopters manufactured by HAL ( Ajeet, Marut, HPT-32, Kiran, Tejas LCA & advanced light helicopters) the co has also manufactured aircraft under licence ( MiG 21FL/M/BIS, MiG-27, Avro, Jaguar, Dornier 228, Su-30 MkI, Hawk Mk 132)
& helicopters under licence (Cheetah & Chetak) along with associated engines, accessories & avionics to meet the demand of Indian defence customers.
The co’s expertise also lies in aircraft upgrade for defence customers, which includes major changes like re-engining (replacing
The co’s expertise also lies in aircraft upgrade for defence customers, which includes major changes like re-engining (replacing
or upgrading engines), avionics upgrade & weapon system integration. It has upgraded several aircraft including the MiG-21 BIS, MiG-27 upgrade & Jaguar to enhance their combat capabilities & performance.
HAL provide support for maintenance, repair & overhaul for these
HAL provide support for maintenance, repair & overhaul for these
indigenous & licence manufactured aircraft & helicopters, as well as for aircraft & helicopters procured directly by the Indian Defence Services along with the associated engines, accessories & avionics.
▪️ Strong order-book :
HAL’s FY22 closing order book was at ₹ 82,513 cr. The co received orders worth ₹ 76,306 cr in the last two years (FY21 & FY22), of which over 50% i.e.
₹ 40,263 cr of orders were from manufacturing segment (led by order received in FY21 for 83 Tejas LCA
HAL’s FY22 closing order book was at ₹ 82,513 cr. The co received orders worth ₹ 76,306 cr in the last two years (FY21 & FY22), of which over 50% i.e.
₹ 40,263 cr of orders were from manufacturing segment (led by order received in FY21 for 83 Tejas LCA
MK1A & 15 light combat helicopters in FY22). Repair & overhaul segment order inflows were at ₹ 27,996 cr in the last two years while ₹ 2,774 cr worth of orders received from development segment during the period.
The co produced 44 aircraft/helicopters in FY22 (same as FY21) and expects to produce 40 aircraft/helicopters in FY23. Among pending orders of HAL, the co has 8 LCA trainers order, 15 LCH order, 9 ALH order, 83 LCA Tejas MK1A order along with engine manufacturing.
▪️ Strong design & development capabilities :
R&D has been the main focus area of the company for increasing indigenisation & value addition in its products/systems. HAL has showcased its research, design and development capabilities with the successful development of
R&D has been the main focus area of the company for increasing indigenisation & value addition in its products/systems. HAL has showcased its research, design and development capabilities with the successful development of
indigenous military aircraft and helicopters such as the Ajeet, Marut, HPT-32, Kiran, Tejas LCA & advanced light helicopter, which were manufactured by the co post approvals. Co has directed its development efforts towards innovative technologies designed to expand its portfolio.
With 10 dedicated R&D centres, HAL is capable of developing a wide range of products. HAL has completed transfer of technology (ToT) absorption & production of aircraft & helicopters like Jaguar, Hawk, MiG-21, MiG-27, Su-30MKI, Cheetah & Chetak Helicopters.
HAL has achieved significant progress in various R&D/development projects viz. basic trainer aircraft (HTT-40), LUH, LCA- MK1A, Jaguar Darin III Upgrade, Hawk-i & Development of Engines. Prototype of LCA Tejas MK1A is ready & type certification of all the systems expected soon.
▪️ Exports opportunity :
HAL’s exports revenue is just 0.6% of total revenues but the co expects it to increase over the coming years as it has a wide range of products/aircraft across categories like transport, trainers, fighters in
aircraft/helicopters. It continues to look
HAL’s exports revenue is just 0.6% of total revenues but the co expects it to increase over the coming years as it has a wide range of products/aircraft across categories like transport, trainers, fighters in
aircraft/helicopters. It continues to look
for export opportunity for some of its products including LCA Tejas MK1A, Trainers or utility aircraft & helicopters along with MRO activities. Co is looking at countries like Malaysia, Philippines, Indonesia & Vietnam. Apart from this, HAL is exploring MENA region for exports.
India's defence exports have grown by six times to ₹ 12,000 crore in FY22 since FY14.The Government of India has set an ambitious annual export target of around ₹ 36,500 crore by 2025.
▪️ Key Risks :
~ Decline of funding in Indian defence budget ,termination of contracts could adversely affect business.
~ Any change in GoI policy could have a material adverse effect on co’s financial condition.
~ Increase in competition from other international companies.
~ Decline of funding in Indian defence budget ,termination of contracts could adversely affect business.
~ Any change in GoI policy could have a material adverse effect on co’s financial condition.
~ Increase in competition from other international companies.
Conclusion :
Hindustan Aeronautics will benefit significantly from the GOI’s indigenisation push in the defence sector. Considering the country’s need for spending more on defence modernisation & faster procurement of defence equipments through indigenisation, increase in
Hindustan Aeronautics will benefit significantly from the GOI’s indigenisation push in the defence sector. Considering the country’s need for spending more on defence modernisation & faster procurement of defence equipments through indigenisation, increase in
capital outlay in defence is necessary, which is also visible through government actions.
Please 🙏 like 👍, comment & retweet ♻️ if you find this useful.
@kuttrapali26 @VVVStockAnalyst @ValueEducator
Please 🙏 like 👍, comment & retweet ♻️ if you find this useful.
@kuttrapali26 @VVVStockAnalyst @ValueEducator
Loading suggestions...