HAL, the Bengaluru-based defence aviation major, has posted 1.04 per cent lower profits at ₹1,226.01 crore on a consolidated basis for the first quarter of FY2020-21 as against ₹1,238.93-crore profits recorded in the same period last year.

The company’s income is lower by 1.18 per cent to ₹10,399.28 crore as against ₹10,277.59 crore in the same period last year. EPS (earnings per share) for the quarter stood at ₹36.66 compared with the ₹37.05 posted last year.

Regarding Covid-19 risk, the company said for the impact on the current year, the group considered the possible effects that may result from the Covid-19 pandemic on the carrying amounts of property, plant and equipment, investment, inventories, receivables and other current assets.

“Impact due to Covid-19 will be minimal as a major portion of the group’s revenue is generated from defence service. Further, the Ministry of Defence, in a letter dated June 12, 2020, has extended the contractual delivery date for a period of four months, ie, March 25 to July 24, due to force majeure. Based on the business model, there is no material impairment which needs to be recognised on plant property equipment, receivables and inventory,” the company said