Hindustan Aeronautics (HAL) Q4 17/18 earnings summary

Executive summary

• FY18 turnover reached ₹18,284 crore, up 3.86% YoY; PBT and PAT declined, while the order book stood at ₹61,123 crore at year-end.

• Production and development milestones advanced across aircraft, helicopters, engines and aerospace structures; R&D spend was ₹1,612 crore, 8.82% of turnover.

Financial highlights

• Turnover was ₹18,28,386 lakh vs ₹17,60,379 lakh in FY17; net revenue from operations was ₹18,51,925 lakh vs ₹17,95,020 lakh.

• PBT was ₹3,32,284 lakh vs ₹3,58,258 lakh; PAT was ₹2,07,041 lakh vs ₹2,61,563 lakh.

• Gross margin was ₹4,27,498 lakh vs ₹4,27,341 lakh; value of production rose to ₹17,55,315 lakh from ₹17,10,273 lakh.

• Export sales declined to ₹314 crore from ₹465 crore; R&D expenditure increased to ₹1,612 crore from ₹1,284 crore.

Outlook and guidance

• Year-end order book was ₹61,123 crore; future inflows were expected, with RFPs received for 83 LCA Mk1A and 15 LCH.

• Current development priorities include LCA Mk1A, LCH, LUH, HTFE-25, HTSE-1200 and Mini UAV; plans also include Su-30MKI upgrade and Jaguar re-engining.

• Two civil Do-228 aircraft were DGCA-certified; civil ALH Dhruv certification and expansion into civil aviation and export markets were being pursued.