HAL expects 8% rise in revenue to Rs 26,500 crore in FY23

Hindustan Aeronautics Ltd (HAL) has been performing strongly in terms of revenue and since the financial year 2015, the public sector undertaking (PSU) has only recorded an uptrend in revenue. For FY22, HAL recorded the highest ever revenue of over Rs 24,000 crore.

In the current financial year, the company’s target is around Rs 26,500 crore, which would give the company a growth of around 8 percent compared to the previous financial year 2021.

“We want to give a growth of at least 8 percent in the current financial year as well as in the next financial year,” said CB Ananthakrishnan, Director — Finance and CFO with Additional Charge of CMD; Director-Engineering and R&D at HAL.

HAL’s order book stands at around Rs 85,000 crore. With this, HAL’s order book looks quite healthy. "We will be able to sustain our growth which we have been showing in the past. The growth could also be getting into a double-digit phase by FY24-FY25 onwards," he said.

"By FY24 onwards, we should be able to achieve the double-digit growth and it will be sustainable. In FY24-FY25 it will be about 11-12 percent and after that, we hope to achieve 15 percent growth," he added.

Ananthakrishnan expects to maintain the margins of 24-25 percent in the years to come.

“HAL's order book stands at around Rs 85,000 crore. There is attrition of another Rs 3,000 crore during the current financial year and the executable timeframe is from 2023-2024 onwards for the next five years."

The entire order book as of today will be executed in the next five-six year timeframe.

Apart from the existing order book of Rs 82,000 crore, the company has got visibility of around another Rs 60,000 crore orders in the next three-five years timeframe on various platforms.

In the next one-two year, around Rs 42,000 crore of orders are likely to get concluded.

Last month, the government published a new list of 780 components and sub-systems that will come under a phased import ban between December 2023 and December 2028.

This is the third such "positive indigenisation" list comprising line replacement units, sub-systems and components used for various military platforms, equipment and weapons to minimise imports by the defence public sector undertakings (DPSUs).

The other two similar lists were published in December 2021 and March 2022.