(Reuters) – India’s Hindustan Aeronautics Ltd (HAL) posted a jump in third-quarter profit on Wednesday, driven by sustained demand for its aircraft from the country’s defence ministry.
The state-owned fighter jet manufacturer’s consolidated net profit rose 14% to 14.40 billion rupees ($165.74 million) for the three-month period ended December 31.
The ordering activity in the defense sector remained robust throughout the quarter, analysts said, and also mentioned that revenue growth was driven by the ongoing execution of the manufacturing order book, along with consistent increases in replacements and spares.
The spares and repair business makes up a substantial portion of HAL’s total sales, according to the company’s latest annual report.
Additionally, HAL secured an order worth 135 billion rupees from the Indian government for 12 Sukhoi fighter jets in December.
The Bengaluru-based company declared a dividend of 25 rupees apiece for fiscal 2025, and said its revenue from operations jumped 15% to 69.57 billion rupees year-on-year.
Last month, defence sector peer Bharat Electronics reported third-quarter numbers that came in better than market expectations.
($1 = 86.8825 Indian rupees)
(Reporting by Kashish Tandon in Bengaluru; Editing by Sherry Jacob-Phillips)
