Hindustan Aeronautics (HAL) on Tuesday said it received a notice from International Court of Arbitration of the International Chamber of Commerce (ICC) on request for arbitration from RUAG Aerospace Services GMBH.
HAL has initiated necessary action with reference to arbitration process. The amount in dispute partially quantified by the opponent party is $21,872,500 (i.e. EUR 20,000,000) against alleged damages on breach of agreement regarding supply of structural parts for production of Dornier-228, by HAL.
Shares of HAL was down 3.10% to Rs 652. It traded in the range of Rs 637.40 and Rs 675 so far during the day.
The stock slumped 16.81% in the past one month.
On a consolidated basis, HAL's net profit rose 1.23% to Rs 460.67 crore in Q3 December 2019 as against Rs 455.07 crore posted in Q3 December 2018. Net sales rose 0.7% to Rs 4456.35 crore during the period under review.
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Hindustan Aeronautics (HAL) is engaged in carrying out design, development, manufacture, repair and overhaul of aircraft, helicopter, engines and related systems like avionics, instruments and accessories primarily serving Indian defence programme. It also manufactures the structural parts of various Satellite Launch Vehicles of the Indian Space Research Organization (ISRO).
The Government of India (GoI) holds majority stake of 89.97% as on 31 December 2019.
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