Shares of Hindustan Aeronautics rose 8% to Rs 1,481.35 on BSE during Wednesday’s intraday trading on reports that the company has signed a memorandum of understanding (MoU) with the French engine company Safran aerospace companies to expand cooperation and explore opportunities for a new helicopter engine on the civil and military markets.
The ESB requested to submit its clarifications to the exchange with reference to the media report dated March 15, 2022.
Over the past three months, the stock has outperformed the market, gaining 15%, against a 2.3% drop in the S&P BSE Sensex. Over the past year, it has risen 37% against a 12% rise in the benchmark. It had reached a record high of Rs 1,568 on October 18, 2021.
In the first nine months ending December 2021 (9MFY22), HAL had recorded a 23% year-on-year (YoY) increase in after-tax profit to Rs 1,985 crore on the back of strong operational performance. Operating revenue also increased by 9% year-on-year to Rs 13,059 crore. Earnings before interest, tax, depreciation and amortization (EBITDA) margin improved 232 basis points to 26.04% from 23.72% in 9MFY21.
HAL is engaged in the design, development, manufacture, repair, overhaul, upgrades and maintenance of a wide range of products including aircraft, helicopters, aero engines, avionics, accessories and aerospace structures. The company was established to meet the needs of Indian Defense Forces (namely Indian Air Force, Indian Navy, Indian Army and Indian Coast Guard) in the field of aerospace.
The company’s business is primarily focused on technology-intensive defense services. The company’s vision is to expand revenue streams in the domestic and international market. This is primarily to drive business growth. The company has developed an aerospace ecosystem in the country to drive industry growth in line with “Atmanirbhar Bharat Abhiyan”.
Business Standard has always endeavored to provide up-to-date information and commentary on developments that matter to you and that have wider political and economic implications for the country and the world. Your constant encouragement and feedback on how to improve our offering has only strengthened our resolve and commitment to these ideals. Even in these challenging times stemming from Covid-19, we remain committed to keeping you informed and updated with credible news, authoritative opinions and incisive commentary on relevant topical issues.
However, we have a request.
As we battle the economic impact of the pandemic, we need your support even more so that we can continue to bring you more great content. Our subscription model has received an encouraging response from many of you who have subscribed to our online content. More subscription to our online content can only help us achieve the goals of bringing you even better and more relevant content. We believe in free, fair and credible journalism. Your support through more subscriptions can help us practice the journalism we are committed to.
Support quality journalism and subscribe to Business Standard.