Hindustan Aeronautics Limited (HAL) – India’s largest defence public sector undertaking (DPSU) – has recorded a record-high revenue for fiscal year (FY) 2020–21 despite Covid-19-related challenges.
HAL said in a filing on the Bombay Stock Exchange that its provisional and unaudited revenue in the year that ended 31 March is “in excess” of INR227 billion (USD3.1 billion). It said the new figure represents an increase of 6% compared to the corresponding figure of INR214 billion for the previous year.
HAL posted record revenues for FY 2020-21, which were partly attributed to a contract announced in February to build 83 Tejas LCA for the IAF. (HAL)
HAL did not disclose its profits but said they were anticipated to hit “double digit growth” for the year.
The state-owned company said its new revenue figure is notable given the challenges it faced during 2020. The record revenues, it said, were “despite the Covid-19 pandemic that affected the company’s operations and disrupted its supply chain both within and outside [India]”.
HAL attributed the gains to “improved productivity and austerity measures” including the indigenisation of components, cost cutting, the outsourcing of some services, and the “rationalisation” of staff. These efforts, it said, were partly motivated by India’s Covid-19 lockdown in 2020 during which HAL was forced to suspend operations for one month.
HAL also indicated that its gains in 2020 were helped by its “largest ever defence contract”, which swelled its orderbook to more than INR800 billion. The USD6.3 billion contract, which was announced in February, was for the supply of 83 Tejas Light Combat Aircraft (LCA) to the Indian Air Force (IAF).
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