 "HAL Q2FY25 results: Net profit jumps 22.1% on defence aircraft demand")
India's Hindustan Aeronautics Ltd (HAL) reported a 22.1 per cent rise in second-quarter profit on Thursday, aided by demand for its aircraft from the country's defence ministry.
The state-owned fighter jet manufacturer and maintenance firm's consolidated net profit rose to Rs 1,510 cr ($178.89 million) in the three months ended Sept 30, from Rs 1,237 cr a year earlier.
HAL had secured an engine manufacturing contract worth Rs 26,000 cr for the Indian Air Force during the reported quarter.
The ordering activity in the defence sector remained robust during the reported quarter, analysts said.
Revenue boost was driven by continued execution of the manufacturing order book and steady growth in replacements and spares, they added.
The spares and repair business brought in the bulk of sales for the company, its latest annual report showed.
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HAL's revenue from operations grew 6 per cent year on year to Rs 5,976 cr in the reported quarter, while its total expenses grew 1.3 per cent.
Defence sector peers Bharat Electronics reported a 38.4 per cent rise in quarterly profit late last month, while Bharat Dynamics is scheduled to report its results later in the day.
Shares of HAL rose as much as 2.2 per cent after the results were announced. The stock last traded up 1.4 per cent at Rs 4,127.1 cr.
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