Hindustan Aeronautics logs record Rs 22,700 cr in top line on IAF dues

 

Hindustan Aeronautics (HAL) has registered its all-time high revenue of over Rs 22,700 crore for FY21, even as operations were hit by production shut-downs and supply chain disruptions after the outbreak.

“The firm has posted (this revenue growth) thanks to improved productivity after suspending operations for one month in the beginning of the year,” said a statement.

“The record revenue was achieved thanks to production of 41 helicopters/aircraft, 102 new engines, and overhaul of 198 aircraft/helicopters and of 506 engines,” said R Madhavan, HAL’s chief. With several large orders having been placed with HAL for FY21, the order book is healthier than any of the preceding years.

“FY21 was significant in terms of securing the largest-ever defence contract of 83 LCA Mark-IA by an Indian entity. This helped the firm surpass the order book position in excess of Rs 80,000 crore,” said Madhavan.

Until last year, the IAF’s failure to pay HAL for aircraft already delivered to it had forced the company to turn to bank borrowings to pay employees’ salaries.

“The firm has ended the year with a positive cash balance of Rs 6,700 crore, against borrowings of Rs 5,775 crore as of March 31, 2020. Cash flow has improved significantly with higher budget allocation from defence customers, in excess of Rs 34,000 crore including advance payment of close to Rs 5,400 crore for 83 [Tejas] Light Combat Aircraft. This has helped HAL liquidate all its borrowings,” said HAL.

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