Despite Covid-19 crisis, HAL sees revenue of over Rs 22,700 crore in FY21

In spite of the COVID-19 pandemic

that affected the companys operations and disrupted the supply chain (both within and outside the country), Hindustan Aeronautics Limited has recorded a revenue in excess of Rs 22,700 crore (provisional and unaudited) for the financial year ended on March 31, 2021.

The corresponding figure for the previous year stood at Rs 21,438 crore, the Bengaluru-headquartered company said a statement.

"The company has posted a revenue growth of around six per cent in FY 2020-21 thanks to the improved productivity after suspending the operations for one month in the beginning of the year", it said.

The year 2020-21 was significant in terms of securing the largest ever defence contract of 83 LCA MK-IA by an Indian company, it noted.

This helped the company surpass the order book position in excess of Rs 80,000 crore, said HAL CMD, R Madhavan.

The record revenue was achieved with the help of production of 41 new helicopters/aircraft, 102 new engines, overhaul of 198 aircraft/helicopters and 506 engines, it was stated.

The cash flow position has improved significantly with improved budget allocation from defence customers and it stands in excess of Rs 34,000 crore, including advance payment of around Rs 5,400 crore for 83 LCA MK1A contract, the company said.

This helped HAL to liquidate all its borrowings availed from the banks.

The company has ended the year with a positive cash balance of around Rs 6,700 crore as against borrowings of Rs 5,775 crore as on March 31, 2020, it said.

HAL said it has taken various cost-cutting and austerity measures during the year that include indigenisation of various components, increasing outsourcing efforts and rationalisation of manpower, which is expected to facilitate the company to register a double digit growth in the profit after tax.

Considering the anticipated growth in profits, HAL paid an interim dividend of Rs 30 per share during the current financial year, representing 300 per cent on the face value of Rs ten per share, the statement added.