Hindustan Aeronautics sales cross $2 bn mark

April 3rd, 2008 - 7:01 pm ICT by admin  

Bangalore, April 3 (IANS) The Hindustan Aeronautics Ltd (HAL) posted a sales turnover of Rs.83.5 billion ($2.08 billion) for 2007-08, registering a modest growth of 7.3 percent over the previous fiscal figure of Rs.77.84 billion, the defence behemoth said here Thursday. The Bangalore-based state-run enterprise has doubled its turnover in three years when it crossed the $1 billion mark in 2004-05.

Though the average sales growth over the last three fiscal years was around 33 percent, the year-on-year (YoY) growth from 2006-07 to 2007-08 was severely affected by a shortage of raw materials in the form of imports.

For instance, the YoY sales growth was 46 percent between 2005-06 and 2006-07.

According to the provisional audit figures released here, the company’s profit before tax (PBT) increased to Rs.21.5 billion in the last fiscal from Rs.17.44 billion in 2006-07, posting YoY growth of 23.28 percent.

With a provision of 31 percent towards minimum alternative tax (MAT), net profit is estimated to be Rs.14.84 billion.

Exports have gone up by 20 percent YoY to Rs.3.25 billion from Rs.2.6 billion in the previous fiscal.

“The total order book for the new fiscal (2008-09) is Rs.45.1 billion, including Rs.23.32 billion worth orders secured in the last fiscal. We have also got orders for supply of 159 advanced light helicopters (ALH), christened Dhruv from services and home ministry,” HAL chairman and managing director Ashok K. Baweja told reporters later.

Referring to the decline in sales growth YoY basis, Baweja said denial of carbon fibre used as a composite material in the manufacture of helicopters and aircraft had hampered the production and execution of orders.

The denial was on the grounds that they could be used for dual use purpose. HAL also could not procure enough gyros and sensors last fiscal.

“We have faced raw material shortage from overseas firms in the last fiscal. As a result, we could roll out only six ALHs, while 14 copters remained incomplete. Hence, there is an urgent need to develop indigenous carbon fibre for making different alloys used as composite materials for our products so as to avoid such delays,” Baweja said.

HAL has paid to the government an interim dividend of Rs.3 billion for the fiscal under review, which is a whopping 249 percent of its paid-up share capital of Rs.1.2 billion.

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