- 14 Mar 2024
- ICICI Securities
MOD SIGNS CONTRACTS WORTH RS 8073 CRORE WITH HAL
HAL - 4401 Change: -33.20 (-0.75 %)News: Ministry of Defence has signed two contracts for a combined value of Rs 8073.17 crore with Hindustan Aeronautics (HAL) for acquisition of 34 Advanced Light Helicopters (ALH) Dhruv Mk III (25 for Indian Army and 9 for Indian Coast Guard). The contract is placed under Buy (Indian-Indigenously Designed, Developed & Manufactured) category.
Views: This contract was expected to be placed with HAL this month as last week Cabinet Committee on Security (CCS) approved the procurement of these helicopters. Post this contract, company's order backlog is estimated to be at ~Rs 85000 crore (3x TTM revenue). Order pipeline remains very strong for next 2-3 years, considering the procurement approvals accorded by the govt in aircrafts, helicopters and aero-engines with continuous flow of repair & overhaul contracts. We believe the execution of new contracts will see considerable improvement led by increasing indigenisation of engines, electronic systems and other components.
Impact: Positive