HAL posts record Rs 29,810 crores revenue for Financial Year 2023-24 - Broadsword by Ajai Shukla - Strategy. Economics. Defence.

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Monday 1 April 2024

HAL posts record Rs 29,810 crores revenue for Financial Year 2023-24

“As on March 31, 2024, our order book stands in excess of Rs 94,000 crores": Chairman HAL


By Ajai Shukla

Business Standard, 2nd April 2024


Hindustan Aeronautics Limited (HAL) recorded its highest ever turnover of over Rs 29,810 crores (provisional and unaudited) for the financial year ended on March 31, 2024. This amounts to a double digit growth of 11 per cent.


With the previous year’s turnover reported as Rs 26,928 crore, growth had amounted to 9 per cent.


“Despite the major supply chain challenges arising due to geopolitical issues, the company has met the expected revenue growth with improved performance for the entire year,” said CB Ananthakrishnan, who is officiating at the chief of HAL.


“As on March 31, 2024, the company’s order book stands in excess of Rs 94,000 crores with additional major orders expected during FY 2024-25”, said Ananthakrishnan.


The company reported that HAL had received fresh manufacturing contracts of Rs 19,000 crores, and repair and overhaul (ROH) contracts of over Rs 16,000 crores during FY 2023-24. 


An export contract with Guyana Defence Forces for the supply of two Hindustan- 228 aircraft was signed in the current FY 2023-24 and both the aircraft have been supplied in record time, within a month of signing of the contract, due to proactive approach of the company.


Reporting that HAL had maintained its growth momentum and achieved an all-round improved performance, the company said: “A very significant milestone was achieved with first production series fighter of the Light Combat Aircraft Mark-1A (LCA Mk1A) completing its maiden flight on March 28.


In an important development during the year, HAL signed an agreement with US firm General Electric (GE) for transfer of technology (ToT) and manufacturing of GE F-414 aero-engine in India for LCA Mark-2 aircraft. 


According to the agreement, HAL would receive 80 per cent technology transfer for this program, “which would transform the Indian aero engine manufacturing ecosystem to be self-reliant,” according to a company press release.


A joint venture, “SAFHAL Helicopter Engines Private Ltd,” was formed with French firm Safran Helicopter Engines, for indigenous design and development of engines for the proposed Indian multi-role helicopter (IMRH) and deck-borne multi-role helicopter (DBMRH).


During the financial year, HAL and Airbus signed a contract for establishing MRO facilities for the A-320 family of aircraft in New Delhi. “This collaboration will strengthen Make-in-India mission and also enhance export potential,” announced HAL.


The Indian Air Force’s (IAF’s) current strength of 31 fighter jet squadrons falls short of the sanctioned total of 42 squadrons. This shortfall is likely to be exacerbated with the phasing out of aging fighters, such as the Mig-21, Mig-29, Jaguar, and Mirage.


HAL’s near-monopoly position in India’s defence aerospace manufacturing sector, coupled with the government’s push to procure indigenously designed and developed defence aircraft, places the company is in a sweet spot to benefit from a long-term demand opportunity. 


HAL is involved in several major fighter jet projects. These include the Tejas Mark-2, advanced medium combat aircraft (AMCA) and the twin-engine deck-based fighter (TEDBF) and helicopter projects (LUH, LCH, IMRH) which will replace various outgoing fleets.

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