HAL Q2 Results: Profit, Revenue Meet Estimates; Margin Contracts

Hindustan Aeronautics Ltd.'s second-quarter revenue and profit jumped by double digits and met estimates.

Consolidated net profit rose 10% to Rs 1,669 crore in the July-September period, compared to Rs 1,510 crore in the corresponding quarter of last fiscal, according to results announced on Wednesday.

Revenue popped nearly 11% year-on-year for the three months ended September, reaching Rs 6,629 crore.

Operating income disappointed, with earnings before interest, taxes, depreciation, and amortisation slipping 5% to Rs 1,558 crore. The Ebitda margin contracted by 390 basis points.

• Revenue up 10.9% to Rs 6,629 crore versus Rs 5,976 crore (Bloomberg estimate: Rs 6,405 crore).

• Net Profit up 10% to Rs 1,669 crore versus Rs 1,510 crore (Bloomberg estimate: Rs 1,646 crore).

• Ebitda down 5% to Rs 1,558 crore versus Rs 1,640 crore (Bloomberg estimate: Rs 1,759 crore).

• Margin at 23.5% versus 27.4% (Bloomberg estimate: 27.5%).

The scrip fell as much as 3.30% to Rs 4,702 apiece on Wednesday. It pared losses to trade 2.80% higher at Rs 4,728.40 apiece, as of 2:44 p.m. This compares to a 0.75% advance in the NSE Nifty 50 Index.

It has fallen 11.02% in the last 12 months and risen 12.72% year-to-date. Total traded volume so far in the day stood at 0.90 times its 30-day average. The relative strength index was at 57.34.

Out of 24 analysts tracking the company, 19 maintain a 'buy' rating, three recommend a 'hold,' and two suggest 'sell,' according to Bloomberg data. The average 12-month consensus price target of Rs 5,664.71 implies an upside of 18%.