Hindustan Aeronautics Limited (HAL), a navratna defence public sector undertaking, is looking at double digit revenue growth from FY25 onwards on the back of expected delivery of 83 LCA Tejas Mk1A to Indian Air Force (IAF).
In an exclusive interview to businessline on Monday, HAL CMD CB Ananthakrishnan said almost 50 per cent of the ₹82,000-crore order book of the defence PSU is flowing out of the LCA project. The first of Tejas Mk1A will be handed over to the IAF in February, next year.
HAL is currently penciling in eight per cent annual growth in revenue and the State-owned company is confident of maintaining its EBIDTA at 27 per cent for the next two years, the CMD said.
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“We have been maintaining that we will be growing at guidance of eight per cent revenue growth till FY23-24 which we have been indicating two years back and continue to maintain at eight per cent in this financial year. From FY24-25 onwards, the growth rate will be a double-digit, which we will be achieving in revenue once we start delivering LCA Mk1A aircrafts,” Ananthakrishnan said ahead of the first quarter Board meeting on August 11.
On the order inflow during April to June, he said approximately the company has bagged orders between ₹3,000 crore to ₹3,500 crore. “Of the opening order book position of ₹83,000 crore, in the first quarter we have liquidated ₹3,000 crore. We have ended Q1 with an outstanding order book position of ₹82,000 crore. An accretion of ₹3,000 crore has happened in the first quarter. The major contracts have been on repair and overhaul,” the CMD said.
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Export focus
The CMD said HAL has targeted 10 per cent of its overall revenue from exports that is likely to emerge out of interests shown by countries such as Argentina, the Philippines, Egypt, and Afghanistan in different versions of LCA Tejas and ALH Dhruv.
Argentina recently signed Letter of Interest (LoI) for ALH. “We have some interest being shown by Argentina towards our helicopters, especially the Advanced Light Helicopters.. somewhere around 16 to 20 numbers is what they are looking for and once it is through then probably we can also expect some additional bigger number,” he said.
He added: “As far as the fighter Tejas aircraft is concerned, we have also submitted the quote (Quotation) and we expect that some positive interest will be shown by Argentina because they are also looking for some fighter aircraft.. Pilots from their air force visited the facilities and were quite impressed with the aircraft”.
HAL is simultaneously ramping up R&D spend from out of its retained earnings. Ananthakrishnan said price negotiations, post inking of the MoU with General Electric (GE) for co-development of F414 engines which would power Tejas Mk2, have not started as yet.