IGI Logo

Decent performance

* HAL reported a decent set of numbers in 4QFY25, with revenue at INR137b down 7% YoY due to a high base of last year.

* EBITDA/EBITDA margin for the quarter decreased by 10%/140bp YoY to INR52.9b/38.6%. Strong margin was attributed to lower-than-expected provisions during the quarter.

* PAT was down 8% YoY at INR39.8b, indicating a PAT margin of 29.0%. This was mainly due to certain provision reversals received during FY24, resulting in higher PAT base in 4QFY24.

* For FY25, revenue at INR309.8b was slightly better than our estimate (2% beat). Gross margins for the year were in line with our estimate at 60.3%, while EBITDA margin stood at 31% for FY25. This was 22% ahead of our estimate, mainly due to a sharp decline in provisions. Depreciation for the year was below our estimate due to lower-thanexpected capex. Other income was significantly higher due to a sharp increase in customer advances boosting cash balance. This led to a PAT of INR83.6b, beating our estimates by 34% for the full year.

* Net operating cash flow at INR136b was better than our estimate, mainly due to improved working capital, led by increased customer advances. Capex by the company in FY25 was lower than expectations, leading to a sharp increase in FCF to INR127b vs. INR73b in FY24.

For More Research Reports : Click Here 

For More Motilal Oswal Securities Ltd Disclaimer
http://www.motilaloswal.com/MOSLdisclaimer/disclaimer.html
SEBI Registration number is INH000000412