In spite of the COVID-19 pandemic that affected the company’s operations and disrupted the supply chain (both within and outside the country), HAL has recorded revenue in excess of Rs. 22,700 crores (provisional and unaudited) for the financial year ended on March 31, 2021. The corresponding figure for the previous year stood at Rs. 21,438 crores. The company has posted revenue growth of around 6% in FY 2020-21 thanks to the improved productivity after suspending the operations for one month in the beginning of the year.
The year 2020-21 was significant in terms of securing the largest ever defense contract of 83 LCA MK-IA by an Indian company. This helped the company surpass the order book position in excess of Rs. 80,000 crores, says Mr. R. Madhavan, CMD, HAL. The record revenue achieved with the help of the production of 41 new helicopters/aircraft, 102 new engines, an overhaul of 198 aircraft/helicopters, and 506 engines.
The cash flow position has improved significantly with improved budget allocation from defence customers and it stands in excess of Rs. 34,000 crores including advance payment of around Rs. 5,400 crores for 83 LCA MK1A contract. This helped HAL to liquidate all its borrowings availed from the banks. The company has ended the year with a positive cash balance of around Rs. 6,700 crores as against borrowings of Rs. 5,775 crores as of March 31, 2020.
HAL has taken various cost-cutting and austerity measures during the year that include indigenization of various components, increasing outsourcing efforts, and rationalization of manpower which is expected to facilitate the Company to register double-digit growth in the Profit After Tax (PAT).
Considering the anticipated growth in profits, HAL paid an interim dividend of Rs. 30 per share during the current financial year representing 300% on the face value of Rs. 10 per share.