HAL has pipeline of Rs.1.24 lakh crore of manufacturing orders over the next three to four years
August 11, 2022 4:26 pm
HAL is in talks with Egypt, Malaysia and Nigeria for setting up manufacturing facilities for the Tejas Mk1A light combat aircraft, helicopters etc.
Hindustan Aeronautics Limited (HAL) has been identified by analysts as “the defence Prime” – essentially crowning HAL as the kingpin of the Indian defence sector. Defence indigenization has been one of the goals of the current Indian government, with an aim to reduce dependence on foreign countries. But a crucial aspect that gets relatively less airtime is defence exports – and it has made investors of Hindustan Aeronautics richer by 75% in 2022 alone, according to businessinsider.in study. It says, according to the analysts at ICICI Securities, HAL’s defence export efforts could also open up export opportunities for two other state-owned defence manufacturers – Bharat Electronics and Bharat Dynamics, thereby helping to expand the Indian defence industrial complex in general.
HAL share price in 2022Business Insider India / Flourish
HAL is in talks with Egypt, Malaysia and Nigeria for defence exports that could amount to over $5.5 billion, with tenders for setting up manufacturing facilities for the Tejas Mk1A light combat aircraft, helicopters and maintenance of Malaysia’s Sukhoi fighter jets, among others. The Indian government’s focus on increasing defence indigenization has also helped HAL in securing economies of scale, making its export offers more competitive.
According to the company’s latest financials, HAL’s current orderbook stands at ₹82,000 crore – this is 3.3-times the company’s FY22 revenue. Further, it has a strong pipeline of ₹1.24 lakh crore of manufacturing orders over the next three to four years, which will help the company deliver double-digit revenue growth, according to a report by ICICI Direct Research. The Indian government set out an ambition of hitting $5 billion in annual defence exports by 2025.