Hindustan Aeronautics (HAL) Q4 14/15 earnings summary

Executive summary

• FY2014-15 turnover reached a record ₹15,621.63 Cr, up 3.26% YoY; PBT was ₹3,172.52 Cr versus ₹3,577.69 Cr.

• Production performance earned an “Excellent” MoU rating; 68 new aircraft and helicopters were produced along with engines and accessories.

Financial highlights

• Sales were ₹15,621.63 Cr versus ₹15,127.94 Cr; export sales rose to ₹499.40 Cr from ₹440.04 Cr.

• PAT was ₹2,388.05 Cr versus ₹2,692.52 Cr; tax provision was ₹784.47 Cr versus ₹885.17 Cr.

• Gross margin was ₹3,986.85 Cr versus ₹4,181.17 Cr; R&D expenditure was ₹1,046.67 Cr versus ₹1,083.26 Cr.

Outlook and guidance

• The ₹14 Do-228 supply contract for the Indian Air Force and new civil-sector DGCA production approval support diversification and future orders.

• LCH, LUH, HTT-40, UAVs and other indigenous development programs are expected to expand the product portfolio; a greenfield helicopter facility is planned at Tumkur.

• R&D strategy targets next-generation technologies and collaboration, with 10% of operating profit after tax earmarked for the R&D corpus.