HAL profit crosses Rs 1000 cr

The defence public sector, Hindustan Aeronautics Limited (HAL), has cruised past Rs 5,000 crore for the first time with a sales turnover of Rs 5,375 crore ($1.21billion).

The company, which declared its financial year results for 2005-06, recorded a growth of 18.5 per cent in turnover over the previous year.

The value of production has also gone up by 16.4 per cent at Rs 5,750 crore, while the profit of the company (profit before tax) soared to Rs 1,002 crore, which is an increase of 32 per cent over its last year's performance. Contracts worth Rs 17,800 crore ($4 billion) were concluded during the year.

The export turnover also shot up to Rs 185 crore, registering a growth of 23 per cent over last year. The company's thrust on exports received a boost with export orders worth Rs 249.33 crore.

HAL has paid the highest-ever interim dividend of Rs 188.45 crore, which is around 156 per cent of the paid-up share capital. The company's good performance is mainly attributable to the successful execution of several programmes during the year, including SU-30 MKI, DO-228, ALH and Lakshya.

This apart, a series of aircraft upgrade programmes are contributing to HAL's growth. HAL's divisions are brimming with activity with Jaguars, Dorniers, SU30MKI, Aerospace structures and ALH.

The ALH production was on in full swing with flying restored and several new machines being delivered to the customers. Besides, HAL launched the project activities for Advanced Jet Trainer (Hawk), to be produced under licence from BAe Systems, UK, with the first Hawk to be rolled out in 2007-08.

HAL has also launched the project for design and development of Light Combat Helicopter (LCH) to meet the requirement of the IAF. Certification activities continued for the Intermediate Jet Trainer (IJT) and Light Combat Aircraft (LCA), with orders received for both types.

During the year, HAL also set the ball rolling for the design, development and manufacture of a 10-ton class multi-role helicopter for the services. The project would be undertaken in collaboration with a reputed foreign company.

Making a foray into the design and development of a transport aircraft, HAL is collaborating with Russian partners for a multi-role transport aircraft in 15-20 ton cargo capacity. This aircraft would meet the requirement of both Indian and Russian Air Forces.

HAL could convert this platform into a 100-seater passenger aircraft. HAL has spent Rs 412.82 crore towards research and development activities during 2005-06.

HAL plans to have increased partnership with various Indian and foreign companies for execution of its current programmes and development of new business opportunities.

HAL considers its manpower as its biggest asset and is implementing a host of HRD activities in this regard.