HAL Q4 earnings: Hindustan Aeronautics Ltd. (HAL) saw a 9% increase in its shares after revealing a 52.18% increase in consolidated March quarter profit on Thursday. Compared to Rs 2,831.19 crore in the same period previous year, the state-run defense PSU declared a net profit of Rs 4,308.68 crore for the March quarter.
Compared to Rs 12,494.67 crore in the same quarter previous year, net sales for the quarter was Rs 14,768.75 crore. HAL shares increased 9.04 percent after the news to peak at Rs 4,562.25 on the BSE.
HAL stated that it was actively seeking clearance from the Indian government's Ministry of Defence to change the LCA (IOC) contract, including a price variation (LCA Change Order 3).
"The Change Order 3 regarding the LCA (IOC) contract was approved. Based on the modified contract, the business recognized Rs 548.94 crore in differential revenue for the quarter/year ended March 31, 2024, related to shipments made in prior years, according to HAL.
HAL stated that, out of caution and pending acceptance of the contract price adjustment, it has recorded revenue in prior years based on the expected selling price of LCA aircrafts. Later, HAL recognized the same as a questionable loan that needed permission.
"Consequent to the approval of the Change Order 3, the company has reversed the provision of Rs l,033.67 crore made in earlier years during the quarter/year ended 31 March, 2024," stated HAL.
