Hindustan Aeronautics Ltd. is expected to report a healthy set of earnings for the September quarter, aided by higher aircraft and helicopter deliveries, growth in its repair and overhaul business, and improving manufacturing execution.
According to Bloomberg estimates, revenue is expected to rise 13% year-on-year to Rs 7,483 crore from Rs 6,629 crore. EBITDA is seen growing 23% to Rs 1,924 crore from Rs 1,558 crore, while EBITDA margin is likely to expand by 220 basis points to 25.7% from 23.5% a year earlier.
Net profit is estimated at Rs 1,899 crore, up 14% from Rs 1,669 crore in the corresponding period last year.
The quarter is expected to benefit from higher deliveries of HTT-40 trainer aircraft, Dhruv NG helicopters and LCA FOC twin-seat trainers. Improvement in supplies of GE F404 engines and progress on the Tejas Mk1A programme are also expected to support investor sentiment.
Apart from manufacturing, HAL’s repair and overhaul (ROH) business is likely to provide a steady revenue base during the quarter. Analysts expect a combination of manufacturing ramp-up and a favourable product mix to support both revenue growth and margin expansion.
