Hindustan Aeronautics (HAL) reported 40.73% growth in Sep-20 quarter top line sales revenues yoy at Rs4,853.6cr. The June quarter saw an especially deep fall in sales as most defence orders came to a halt. However, now with the government focusing on Atma Nirbhar Bharat approach, the orders books have been overflowing.
For the Sep-20 quarter, the operating profits were up 51.16% at Rs809.78cr. This growth was achieved on the back of input costs and expenses much slower than the revenues growth. This resulted in the operating margin or OPM expanding from 15.53% in the Sep-19 quarter to 16.68% in Sep-20 quarter.
Profit after tax (PAT) for the Sep-20 quarter was down 1.04% at Rs615.2cr. That is slightly misleading as HAL had a tax outflow of Rs211cr in Sep-20 quarter but got a net deferred tax credit of Rs140 cr in Sep-19 quarter. In the absence of that, PAT growth should also have grown by around 50% on yoy basis. PAT margins shrank from 18.02% to 12.67% in Q2.
Financial highlights for Sep-20 compared yoy and sequentially
|
|
Hindustan Aeronautics Ltd |
|
|
|
Rs in Crore |
Sep-20 |
Sep-19 |
YOY |
Jun-20 |
QOQ |
|
Revenues |
4,853.60 |
3,448.96 |
40.73% |
1,736.74 |
179.47% |
|
Operating Profit |
809.78 |
535.71 |
51.16% |
273.09 |
196.52% |
|
Profit After Tax (PAT) |
615.19 |
621.66 |
-1.04% |
148.65 |
313.85% |
|
|
|
|
|
|
|
|
Diluted EPS (Rs) |
₹ 18.40 |
₹ 18.59 |
|
₹ 4.45 |
|
|
Operating Margins |
16.68% |
15.53% |
|
15.72% |
|
|
PAT Margins |
12.67% |
18.02% |
|
8.56% |
|
Key takeaways from the Sep-20 quarter results
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It needs to be noted that the fall in net profit is due to a one tax deferred credit in the Sep-19 quarter due to the shift in tax formula. In the absence of that, the profits for the current quarter should have been 50% higher.
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In the latest quarter, HAL had a debt/equity ratio of 0.3. The DSCR and ISCR improved sharply to 12.56X in the latest quarter, more than twice yoy.
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