HAL Growth Story To Continue For Next Five Years, Says Management

The defence PSU projected double-digit growth from FY25 onwards but achieved that in FY24 itself, said Ananthakrishnan, who also has additional charge as chairman and managing director of the company. "That shows the resilience and commitment that HAL has towards its stakeholders."

The outstanding orderbook is around Rs 94,000 crore. This can be expected to swell to Rs 1.25 lakh crore by FY25, the MD said. "We have very clear visibility of our future orders for a 1-3 year time frame." With a potential of an additional Rs 2 lakh crore in the order book, a Rs 3.5 lakh crore worth of total order book is clearly visible, he said.

"With our present growth rate of about 13%, the momentum and the growth story will continue for HAL for the next 5-6-year time frame."

The public sector aerospace and defence company is in a position to maintain the current operation margin of 20% and Ebitda at around 30-33%, he said.

The execution for the next 3-4 years will be there as per the delivery contracts, and "delayed deliveries will be the thing of the past and HAL will be consistently delivering as per the contract."

The defence PSU's fourth-quarter profit rose 52.2% year-on-year to Rs 4,309 crore for the quarter ended March 2024

The defence PSU is also planning to cater to its export order as well, Ananthakrishnan said. The company is taking aggressive measures in opening marketing offices in various regions and taking measures to make sure that the market potential of other countries are fully exploited, he said.

The PSU has gotten leads from various regions, including Argentina, Egypt, Malaysia, Nigeria, and the Philippines. "All these leads will be converted into business contracts in the future."

HAL will be able to substantially bring in exports as part of its revenue profile, he said. "We expect at least 10% of our total revenue in next 3-5 years from our exports."

Shares of Hindustan Aeronautics Ltd. rose to a fresh life-high on Tuesday after Nomura Research and Jefferies raised their target price, following an upgrade by UBS, on the back of a strong order book and robust pipeline.