HAL Q1 profit jumps 15% as Maharatna defence PSU beats Street, margin expands

Bengaluru-based Hindustan Aeronautics Ltd. reported a stronger-than-expected June quarter on Wednesday, beating CNBC-TV18 estimates across profit, revenue and EBITDA, while margins also came in ahead of expectations.

Net profit of the Maharatna defence PSU rose 14.7% year-on-year to ₹1,580 crore, compared with the CNBC-TV18 poll estimate of ₹1,493 crore. Revenue grew 14.4% to ₹5,515 crore, ahead of the ₹5,268-crore estimate.

The operating performance was stronger too. EBITDA increased 18.8% year-on-year to ₹1,529 crore, beating the ₹1,358 crore expected by the poll. EBITDA margin expanded to 27.7% from 26.6% a year ago and was ahead of the 25.8% Street estimate.

The numbers also translated into a positive market reaction. Shares of Hindustan Aeronautics rose over 3% after the earnings announcement on August 12, touching an intraday high of ₹5,055 on the NSE.

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Hindustan Aeronautics is India's state-owned aerospace and defence company, engaged in the design, development, manufacture, repair and overhaul of aircraft, helicopters, engines and related aerospace systems for the country's defence forces.