India`s HAL Q2 profit jumps on defence aircraft demand
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India's Hindustan Aeronautics Ltd (HAL) reported a 22.1% rise in second-quarter profit on Thursday, aided by demand for its aircraft from the country's defence ministry.
The state-owned fighter jet manufacturer and maintenance firm's consolidated net profit rose to 15.1 billion rupees ($178.89 million) in the three months ended Sept. 30, from 12.37 billion rupees a year earlier.
HAL had secured an engine manufacturing contract worth 260 billion rupees for the Indian Air Force during the reported quarter.
The ordering activity in the defence sector remained robust during the reported quarter, analysts said.
Revenue boost was driven by continued execution of the manufacturing order book and steady growth in replacements and spares, they added.
The spares and repair business brought in the bulk of sales for the company, its latest annual report showed.
HAL's revenue from operations grew 6% year on year to 59.76 billion rupees in the reported quarter, while its total expenses grew 1.3%.
Defence sector peers Bharat Electronics reported a 38.4% rise in quarterly profit late last month, while Bharat Dynamics is scheduled to report its results later in the day.
Shares of HAL rose as much as 2.2% after the results were announced. The stock last traded up 1.4% at 4,127.1 rupees.
($1 = 84.4080 Indian rupees)
