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Hindustan Aeronautics posted a mixed bag of Q2 results, profits and revenue took flight, but margins hit some turbulence. The stock tumbled 2% on the back of the earnings.
By the numbers:
Net profit: up 10.5% YoY at ₹1,669 crore vs ₹1,510.4 crore
Revenue: up 11% YoY at ₹6,620 crore vs ₹5,977 crore
The company’s EBITDA margin dropped to 23.5% from 27.4% last year, mainly due to higher costs and provisions.
Experts had already warned that margins might dip this quarter because of rising expenses and higher working capital needs.
What’s next: investors are now looking for HAL to provide updates on the Tejas Mk1A delivery schedule, which has faced some delays. Focus will also be on the GE engine supply pipeline, with four units already delivered so far.
