Hindustan Aeronautics (HAL) Q4 11/12 earnings summary

Executive summary

• FY2011-12 turnover reached a record ₹14,204.21 crore, up 8.30% YoY; PBT rose 17.22% to ₹3,328.52 crore despite a challenging economic backdrop.

• Production and development advanced across aircraft, helicopters, engines and overhaul work; exports and indigenous programs remained strategic priorities.

Financial highlights

• Turnover ₹14,204.21 crore vs ₹13,115.50 crore; exports ₹348.33 crore vs ₹237.38 crore; PBT ₹3,328.52 crore vs ₹2,839.52 crore.

• PAT ₹2,539.43 crore vs ₹2,114.26 crore; tax provision ₹789.09 crore vs ₹725.26 crore.

• R&D expenditure ₹967.51 crore vs ₹986.96 crore; gross margin ₹4,050.83 crore vs ₹3,654.32 crore.

• Exports grew 47% YoY; export orders worth ₹571 crore were booked, including aircraft, helicopter, avionics and aerospace-component work.

Outlook and guidance

• FY2012-13 turnover targeted above FY2011-12; the 2012-22 perspective plan targets sales of ₹27,200 crore by 2017.

• IJT IOC and LCA Phase II IOC were expected in 2012-13; ALH-WSI Phase I IOC was expected in Q2 FY2012-13, with Rudra deliveries planned during the year.

• Concurrent MMRCA, FGFA, MTA, LCH, LUH, IJT and LCA programs create cost, schedule and capacity demands; dedicated project teams and infrastructure upgrades are planned.

• Civil aviation, MRO, exports and UAVs are identified as growth opportunities, supported by India's expanding aviation market and defence modernisation plans.