Hindustan Aeronautics posts first drop in profit in 10 quarters


BENGALURU: Hindustan Aeronautics Ltd (HAL) on Friday reported its first profit decline in 10 quarters, impacted by higher production costs and tax expenses.
HAL’s consolidated net income fell nearly 9% to Rs.28.31 billion (US$346.2 million) in the fourth quarter ended March 31.
While operating income rose 8% to Rs 124.95 billion, this was offset by a 9.2% increase in expenses led by a nearly 39% increase in material costs, HAL said in a stock exchange statement.
The company also said it incurred tax expenses of Rs 124.7 million in the quarter, compared with a profit of Rs 5.28 billion from tax refunds a year ago.
The state-owned aerospace and defense company whose clients include the Indian Army, Navy and India air forcealong with aerospace giants Airbus and Boeing, said their backlog for the quarter stood at Rs 817.84 billion.
HAL is engaged in the design, development, manufacture, repair, overhaul, upgrade and maintenance of a wide range of products including aircraft, helicopters, aero engines, avionics, accessories, aerospace structures and industrial marine gas turbines.
According to stock market data, the government currently owned a 71.65% stake in HAL at the end of March after selling 3.5% of its shares in a deal that netted it Rs 28.67 billion in the last financial year.
Shares of HAL actually fell 2.4% after the results after rising 7.9% in the March quarter.

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