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Hindustan Aeronautics Limited (HAL) posted a 31% rise in first-quarter profit on Friday as fullfillment of orders helped boost aerospace and defense equipment maker's revenue.

The state-owned company reported a net profit of 8.14 billion rupees ($98.28 million) for the quarter through June 30, up from 6.20 billion rupees, a year earlier.

Revenue from operations rose 8.1% to 39.15 billion rupees in the quarter, outpacing a 7.8% rise in total expenses, which were led by surging employee benefit costs.

Its other income, which includes interest and dividends, more than doubled to 4.1 billion rupees compared with a year-ago quarter.

HAL, the supplier of aircraft to the Indian military, also supplies to Airbus and Boeing.

The company in May said it is targeting revenue growth of 10% in fiscal 2024 as it bets on finalising orders worth at least $480 billion in coming months.

"The company had a good start for FY24. The results are in line with the company's guidance as well as our estimates," said Harshit Kapadia, research analyst at rating agency Elara Securities.

The Bengaluru-based company also benefited from the rising indigenisation of vessels as a part of the government's "make in India" push.

HAL's shares closed almost flat after the results, taking its year-to-date gains to about 49%.

($1 = 82.8250 Indian rupees)