HAL: Expect top-up order of Rs.10,000 crore over current Rs. 80,000 crore plus order book. And, this will last for 10-12 years.
Hindustan Aeronautics Limited is in focus on the back of Q4 earnings. The company posted 31% jump in profit and its margins also improved.
R Madhavan, CMD at Hindustan Aeronautics.
“The first quarter of this year wasn’t all that great, it was a bit depressed because of the COVID situation and virtual lockdown in Bangalore, which is our major area where we produce.
So, first quarter will be little depressed numbers, but we intend to make good in the coming quarters as we did last year.”
New Order booked
On order book:
“What we have now is an orderbook related to helicopters, where we have orders from Navy, Army and Coast Guard. We do have orders on engines, and that is the area that will be driving this year. Of course, the light combat aircraft (LCA) order is also pending, which we will be delivered this year, so that will be driving this year’s new sales.”
The fresh LCA orders
- The order that is pending with us as of now is the initial order of 40 numbers
- Out of this, the last of the fighter aircraft that is our 10 numbers will be delivered this year.
- There are some trainers that will be delivered next year.
- Pending the finalisation of the design for those, so that will be sought in 2022-2023.
“2024 onwards, is when we will have to supply the remaining 83 LCA- the fresh orders that have been placed with us. That is three years hence so that will be from March 2024 onwards, we will be supplying and it will continue for another six years from the first delivery.”
The Current Order Book of Rs. 80,000 crore
“As of now, we have an orderbook in excess of Rs 80,000 crore, driven from 83 LCA. We are expecting top up order on Su-30 for another 12, which is another Rs 10,000 crore, to be added to it. So, the order book as we see is there for at least 10-12 years from now.”
The cash reserves with the organisation for new projects
On cash reserves, he said:
- A part of cash is meant as advances for the procurement of 83 LCA that we are going to utilise immediately.
- There is also a capex that we are planning for the coming years, which will take care of this.
- We intend to use this for the development of the Tumkur project.
- And, also for the procurement of materials for the upcoming projects of helicopters.
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