- 12 May 2023
- ICICI Securities
Hindustan Aeronautics Q4 Results 2023: Revenue largely in line; margins better-than-expected
Hindustan Aeronautics Ltd | CMP: 5344 | Market Cap: 357,396.70
Revenue came largely in line; margins better-than-expected
Q4FY23 Earnings Summary
View: Overall operating performance was better than estimates mainly on account of better margins. Going ahead, we believe that company’s revenue growth to pick-up considerably from FY25E onwards led by deliveries of Tejas MK1A (which remains one of the largest manufacturing contracts for company in the current order book). Order backlog at Rs 82000 crore at Mar-23 end (3.1x FY23 revenues) provides healthy visibility. Moreover, there are large scale key orders in pipeline for the next 3-4 years including Tejas MK2, next phase of Helicopters (LCH, LUH and ALH), transport aircrafts, unmanned ariel vehicles, aircraft engines etc. We believe that pick-up in execution in manufacturing contracts, ongoing maintenance & repair contracts and upcoming large scale orders would drive earnings for HAL in the coming period.
Impact: Positive