Date:04/04/2008 URL: http://www.thehindu.com/2008/04/04/stories/2008040456821900.htm

Business

HAL posts Rs. 2,145 cr. pre-tax profit

Special Correspondent

BANGALORE: Hindustan Aeronautics Ltd. (HAL) on Thursday posted a turnover of Rs. 8,350 crore in 2007-08. While the turnover increased by about 7 per cent, the pre-tax profit grew by 23 per cent to Rs. 2,145 crore. Exports reached Rs. 325 crore, increasing by 20 per cent over 2006-07. The gross margin was 22.16 per cent in 2007-08.

Ashok K. Baweja, Chairman, said the turnover had doubled in the last three years. In the previous year, the company received orders worth Rs. 23,315 crore.

This includes orders for 159 advanced light helicopters (ALHs) to the armed forces. The company had an order book worth Rs. 45,100 crore at the end of last year. HAL was given the Navaratna status during the year. Mr. Baweja said HAL is “playing a key role in developing India as an aerospace hub.”

He said the ALH Mark III would enter the service in the current year with a “brand new engine” (the Shakti engine). The “fourth avatar” of the ALH would be ready “in a few years”, he said.

The “first Indian-made hawk” was ready for delivery to the armed forces. The company would manufacture 42 Hawks in the next two years, and 60 more after that, he said.

The light combat aircraft (LCA), which is “undergoing extensive trials, will be ready by 2010,” he said.

Venture with Russia

The company is set to form a joint venture with the Russian aircraft designer and manufacturer, Ilyushin, for manufacturing a multi role transport aircraft (MTR).

Mr. Baweja said the fuselage of the aircraft would be manufactured by HAL.

The company was also in talks with Russian companies for developing the fifth generation fighter aircraft.

Asked whether the closure of the HAL airport at Bangalore will have adverse financial implications for HAL, Mr. Baweja said, “We will lose revenue, but we will make money somewhere else.” He said, the company’s airport can still earn money from testing aircraft and from non-scheduled air traffic.

HAL’s capability in offering “simulator solutions” will enable the company to emerge as “a hub for simulator training,” he added.