HAL Q1 results today: Defence PSU slips 2%, extends 1 month fall to 10%; earnings preview

Shares of Hindustan Aeronautics Ltd (HAL) fell on Tuesday, ahead of the defence PSU’s June quarter results. Stock analysts tracking the company said investors may keenly follow ay update on GE engine supplies and commentary on repeat order of LCA Mark 1A. 

HAL shares fell 2.36 per cent to hit a low of Rs 4,341 on BSE today. The stock is down 10.42 per cent in the past one month compared with 2.16 per cent fall in the BSE Sensex during the same period.

Nomura India expects HAL to report 16.6 per cent YoY rise in adjusted net profit at Rs 1,198.80 crore compared with Rs 1,028.40 crore in the same quarter last year. Revenue is seen rising 11 per cent YoY to Rs 4,825 crore from Rs 4,347 crore. Ebitda is seen at Rs 1,107 crore and Ebitda margin at 22.9 per ecnt, up 9 basis points YoY.

“We expect revenue to grow 11 per cent YoY led by the execution of the healthy order book of Rs 1.8 lakh crore. Further, we expect Ebitda margin to remain flat YoY. We expect other income to grow 18 per cent YoY and depreciation expenses to remain flat YoY resulting in a 17 per cent YoY growth in PAT,” Nomura said. 

MOFSL said revenue for HAL may grow 21 per cent YoY, driven by a healthy execution of the opening order book. Key monitorables include the status of Tejas Mk1a deliveries and Su-30 avionics upgrade project, any major deviation in provisions created, and the working capital cycle, it said.

For the quarter, MOFSL sees Ebitda margin expanding 120 basis points YoY, aided by increased indigenization and easing of supply chain issues.

“The execution of huge backlog, incremental inflows, and comfortable margin levels will be the key focus areas,” it said while expecting profit for HUL to come in at Rs 1,260 crore, up 24 per cent. This brokerage sees sales at Rs 5,250 crore, up 20.80 per cent YoY.