Hindustan Aeronautics Ltd's Q1FY19 standalone net profit rises 9.3% yoy to Rs360.5cr

The company’s standalone revenue stood at Rs2,814cr, up 0.8% yoy

Aug 13, 2018 09:08 IST India Infoline Research Team

Hindustan Aeronautics Ltd Q1FY19

Standalone Results Q1FY19: (Rs. in cr)

Q1FY19 YoY (%)
Revenue 2,814 0.8
EBITDA 544.5 52.0
EBITDA Margin (%) 19.4 652
Net Profit (adjusted) 360.5 9.3
***EBITDA margin change is bps

Hindustan Aeronautics Ltd (HAL)’s Q1FY19 results have been a mixed bag with disappointment on sales and net profit fronts, while EBITDA has increased significantly. Sales for the quarter grew by mere 0.8% yoy to Rs2,814cr. EBITDA has increased by 52% yoy to Rs544.5cr vs. Rs358.3cr. EBITDA margin has gone up by 652bps yoy to 19.4%. Net profit during the quarter increased by 9.3% yoy to Rs360.5cr.

• Sales for the quarter has been tepid due to slow execution of order book.
• The raw material cost and other expenses have declined by 12% and 19% yoy leading to strong growth in EBITDA. Depreciation charges are up by 27% yoy.
• Other income has declined by 35% yoy to Rs130.1cr.
• Tax rate has increased from 24.6% in Q1FY18 to 30.3% in Q1FY19. Thus, net profit growth has been subdued.

Technical View:

Hindustan Aeronautics Ltd is currently trading at Rs. 981, up by 9.5 points or 0.98% from its previous closing of Rs. 971.50 on the BSE.
The scrip opened at Rs. 970 and has touched a high and low of Rs. 996.45 and Rs. 960 respectively. So far 66,315 (NSE+BSE) shares were traded on the counter. The stock is currently trading below its 50 DMA.

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