Hindustan Aeronautics (HAL) Q4 16/17 earnings summary

Executive summary

• FY2016-17 turnover reached a record ₹17,605 Cr, up 6% YoY; PBT rose 12% to ₹3,583 Cr and PAT was ₹2,616 Cr.

• Production included 56 new aircraft and helicopters; output of Su-30MKI aircraft reached an all-time high of 13.

• MoU performance for FY2016-17 was provisionally rated Excellent.

Financial highlights

• Exports were ₹465 Cr versus ₹446 Cr in FY2015-16; gross margin was ₹4,306 Cr versus ₹4,070 Cr, up 6%.

• PAT was ₹2,616 Cr versus ₹1,998 Cr; R&D expenditure was ₹1,284 Cr versus ₹1,191 Cr.

• Net worth increased to ₹12,537 Cr from ₹11,019 Cr; sales per employee rose to ₹60 lakh from ₹55 lakh.

Outlook and guidance

• Strategy centers on indigenous design and R&D, partnerships with research institutions and OEMs, vendor development, and increased private-sector outsourcing under Make in India.

• Do-228 civil variants are positioned for the up-to-20-seat short-haul market and the UDAN regional connectivity opportunity; two aircraft were under development using internal funds.

• LCH, LUH, HTT-40, HTFE-25, UAVs, and aircraft upgrades are intended to broaden the product portfolio and business horizon over the next 10–15 years.