HAL Q1 FY25 Consol Net Profit Rises 76.4% to Rs 1,436 Cr

Key Takeaways from Hindustan Aeronautics Limited Financial Performance: 

• HAL’s consolidated net profit for the Q1 ended June 2024 stood at Rs 1,436 crore. It was 76.4% higher compared to the corresponding period of last year, which was Rs 814 crore.
• Revenue from operations grew 11% year-on-year to Rs 4,347 crore and from Rs 3,915 crore in the previous year.
• EBITDA expanded to 13% and was at Rs 994 crore, compared to last year's Rs 880 crore.
• EBITDA margins grew by 40 basis points to 22.9% versus 22.5% in the same quarter last year.

The company's revenue from operations rose to 11% year-on-year to Rs 4,347 crore versus Rs 3,915 crore during the same period last year. 

The standalone EBITDA of Hindustan Aeronautics rose 13% to Rs 994 crore, over last year's Rs 880 crore.

Additionally, EBITDA margins improved 40 basis points to 22.9% compared with 22.5% in the comparable quarter of last year.

About Hindustan Aeronautics Limited:

Hindustan Aeronautics Limited started as Hindustan Aircraft Limited founded on December 23, 1940, in Bangalore by the visionary Shri Walchand Hirachand in collaboration with the Government of Mysore. The objective was to manufacture aircraft within India. In March 1941, it became a shareholder of the company and management passed to the Government of India in 1942. It started manufacturing aircraft like the Harlow Trainer, Curtiss Hawk Fighter, and Vultee Bomber through collaboration with the Inter Continental Aircraft Company of the USA. In January 1951, it came into the possession of the Ministry of Defence, Government of India.

The company initially produced foreign-designed aircraft and engines under license. Its models included the Prentice, Vampire, and Gnat. It also designed and developed aircraft on its own. In August 1951, the HT-2 Trainer aircraft first took to the air in the design and production of Dr. V.M. Ghatge. Over 150 HT-2 Trainers were produced and supplied to the Indian Air Force and other customers. As the design capabilities of the company expanded, it successfully managed to design four more aircraft: a two-seater Pushpak for flying clubs, Krishak for AOP operations, the HF-24 Jet Fighter, Marut, and the HJT-16 Basic Jet Trainer, Kiran.

Key Takeaways from the Launch

• Zen Technologies, in collaboration with AI Turing Technologies, has launched four advanced remote-controlled weapon and surveillance systems. 
• The newly unveiled systems are designed for use across land, sea, and air, strengthening India’s operational efficiency in multiple defence sectors.
• The systems, including Parashu, Fanish, Sharur, and Durgam, reflect Zen’s commitment to India’s ‘Aatmanirbhar Bharat’ initiative by offering homegrown, IP-owned solutions for defence modernisation.

These innovations are set to transform India’s defence capabilities across land, sea, and air by integrating advanced technologies that enhance operational efficiency.

According to a stock exchange filing, the RCWS - 7.62 x 51 MMG (Parashu) is a versatile weapon system optimised for both vehicles and ships, equipped with advanced thermal imaging and anti-drone features, making it an essential tool for rapid-response missions. Fanish, a tank-mounted RCWS 12.7 x 108 HMG, enhances firepower for tanks like the T-72 and T-90, ensuring precision in extreme conditions through sophisticated targeting technology. For naval defence, Sharur provides superior accuracy in low-visibility conditions, engaging surface and aerial threats with its robust stabilisation system. Lastly, the Artillery Rugged Camera (Durgam) offers all-weather surveillance with day/night vision, ideal for use in high-threat zones and extreme environments, providing real-time threat detection.

These systems underscore Zen Technologies’ commitment to the ‘Aatmanirbhar Bharat’ initiative by providing indigenous, IP-owned defence solutions, advancing India’s defence modernisation across various platforms, the company said in the filing.

This launch further solidifies Zen's position as a key player in India’s defence sector, building on its previous successes with systems like Hawkeye and Prahasta.

Commenting on the launches, Ashok Atluri, Chairman and Managing Director of Zen Technologies, said: “At Zen, we, along with our associate companies are dedicated to designing and developing cutting-edge technology to enhance both national defence and global security. Our new range of remote-controlled weapons and surveillance systems are designed to equip armed forces with advanced tools that significantly boost operational capabilities while taking our soldiers out of harm’s way giving our forces extraordinary tactical superiority. This launch underscores our commitment to position India as a global leader in certain technologies of defence industry.” 

About Zen Technologies Limited

Zen Technologies, founded in 1996, creates combat training systems and anti-drone solutions for defence and security forces. The company focuses on developing technology within India, benefiting the country’s armed forces, police, and paramilitary units. Zen Technologies is based in Hyderabad, India, with additional offices in the UAE and the USA.

Key Takeaways from Tata Motors Financial Performance:

• Tata Motors reported a 74% year-on-year increase in consolidated net profit at Rs 5,566 crore from Rs 3,203 crore the previous year.
• Revenue from operations for April-June rose 5.7% at Rs 1,07,316 crore compared with Rs 1,01,528 crore for the same period last year.
• Consolidated EBITDA grew 19% year-on-year, with the operating margin improving to 14.6% from 12.9%.
• Domestic CV revenue of Rs 17,800 crore witnessed 5.1% growth and margins improved 240 bps QoQ at 8.9%.
• Passenger vehicle revenue declined 7.7% due to challenging market conditions but EBITDA improved by 50 bps at 5.8% due to low material costs.
• JLR reported a revenue increase of 5.4% in the quarter to GBP 7.3 billion and firmed up its EBIT margins at 8.9% due to improved sales and cost efficiencies.

EBITDA for the company stood at Rs 15,785 crore, with a year-on-year growth of 19%. The operating margin touched 14.6% from the earlier level of 12.9% in the corresponding quarter of the previous year.

Revenue from the domestic market for commercial vehicles stood at Rs 17,800 crore, up by 5.1% year-on-year. Consolidated EBITDA margins grew by 240 basis points to 8.9% mainly because of better pricing and cost savings.

However, passenger vehicle revenues fell by 7.7%, primarily because of tough market conditions. EBITDA, however, increased by 50 basis points at 5.8% due to lower material costs.

JLR or Jaguar Land Rover for Tata's premium line of business’ revenues were up by 5.4% for the quarter at GBP 7.3 billion with EBIT margins increasing to 8.9% due to better sales and lower material costs.

“The passenger vehicle industry in Q1FY25 witnessed retail (registrations) moderating, impacted by the general elections and intense heatwaves across the country,“ Shailesh Chandra, Managing Director, Tata Motors Passenger Vehicles and Tata Motors Electric Mobility, said. “Tata Motors’ sales of 138,682 cars and SUVs were slightly lower than in Q1FY24, as we proactively readjusted our wholesales in line with retail to keep channel inventory under control.”

About Tata Motors Limited:

Tata Motors Limited, or TML, is one of the largest Original Equipment Manufacturers in India. It offers a comprehensive suite of integrated smart and e-mobility solutions. Commercial vehicles of TML range from less than 1 tonne gross vehicle weights to 55 tonnes and small, medium, and large buses and coaches. For passenger cars, TML introduced the NEW FOREVER range, which gives a new expression through the IMPACT 2.0 design language, along with innovative and sustainable technologies. Similarly, with new-age electric mobility, TML is well-positioned to outclass the Indian market. In addition to these, TML has joint ventures with Fiat Group Automobiles to manufacture passenger cars, engines, and transmissions for both domestic markets as well as with Cummins Inc. for the design and production of diesel engines.

Key Takeaways from Hyundai IPO Approval from SEBI:

• Hyundai Motors has received approval from SEBI for its initial public offering (IPO).
• The IPO will involve an offer for sale of up to 14.21 crore equity shares, each with a face value of Rs 10.
• The primary purpose of the offer includes executing the sale of equity shares and achieving listing benefits on stock exchanges, enhancing visibility, and brand image, and providing liquidity for the shares in India.
• The investment banks advising on the deal include Citi, HSBC Securities, JP Morgan, Kotak Mahindra Capital, and Morgan Stanley.
• The legal firms representing the banks in this transaction are Latham and Watkins and Shardul Amarchand Mangaldas, serving as corporate counsel.

‘The objects of the offer are to carry out the Offer for Sale of up to 142,194,700 Equity Shares of the face value of Rs 10 each by the Promoter Selling Shareholder and to achieve the benefits of listing the Equity Shares on the Stock Exchanges,’ according to the DRHP. 

‘Further, our Company expects that listing of the Equity Shares will enhance our visibility and brand image and provide liquidity and a public market for the Equity Shares in India’, the DRHP stated.

The i-banks providing advice on the deal are Citi, HSBC Securities, JP Morgan, Kotak Mahindra Capital, and Morgan Stanley. The legal firms representing the banks are Latham and Watkins and Shardul Amarchand Mangaldas, who serve as the corporate counsel.

About Hyundai Motors India Limited:

Hyundai Motor India Limited is a 100% subsidiary of Hyundai Motor Company in the country, with a focus on sustainable, eco-friendly manufacturing practices that support the vision of ‘Progress for Humanity’ by HMC. The company has an extensive network of 1366 dealerships and 1550 service centres across the country. HMIL offers a diversified product portfolio of passenger cars, starting from a high-selling Grand i10 NIOS to a stylish i20, and an all-electric IONIQ 5 model, manufactured at their factory in Chennai and even exported from the facility to other African, Middle East, and neighbouring Bangladesh, Nepal, Bhutan, and Sri Lanka markets.