It gives me immense pleasure to welcome you all for the 61st Annual General
Meeting of Hindustan Aeronautics Limited.
The year 2023-24 was an eventful and productive year for your Company, where in
considerable progress was made in terms of revenue, profitability, order book and
productivity.
I take this opportunity to share the performance highlights during the year and future
outlook for the Company.
Financial and Performance Highlights of the Year
In the financial year 2023-24, your Company recorded the highest ever turnover of
'28,16,185 Lakh experiencing strong growth of 7% from the previous year's '26,36,056 Lakh.
The Profit before Tax for the year increased by 57% to '10,19,897 Lakh from '6,49,294 Lakh
in the previous year. The Profit after Tax (PAT) increased by 31% to '7,59,504 Lakh from
'5,81,117 Lakh in the previous year. Our Order Book position stood healthy at '94,12,900
Lakh as on 31st March, 2024.
The Company has paid interim Dividend of '22 per equity share of face value of '5 each
for the Financial Year 2023-24, totalling to '1,47,130.50 Lakh. Further, the Board of
Directors of the Company has recommended a final dividend of '13 per share of '5 each for
approval of shareholders, with a cash outflow of '86,940.75 Lakh. On approval by the
shareholders, the total cash outflow for payment of Dividend for the Financial Year
2023-24 would be '2,34,071.25 Lakh.
During the year, the Company has produced new Aircraft and Helicopters, covering Light
Combat Aircraft (LCA) Tejas Mk1A, LCA Tejas Trainer, Dornier Do-228, Advanced Light
Helicopter (ALH) Dhruv and Light Utility Helicopter (LUH) in addition to the production of
New Engines and various Accessories, at its various Divisions. The Company has also
overhauled various Aircraft & Helicopters and Engines during the year supporting the
upkeep of the aviation assets with the Indian Defence Services and other Customers.
Significant Achievements
Your Company accomplished several significant achievements during the year, some of
which are highlighted as under:
• The first LCA Tejas twin seater was handed over to the Indian Air Force (IAF) in
the presence of Raksha Rajya Mantri.
• Two Nos. of Hindustan-228 aircraft supplied to Guyana Defence Forces in record
time within a month of signing of contract due to proactive approach of the Company.
• The first Mid Life Upgraded (MLU) Dornier aircraft fitted with Pollution
Surveillance System (PSS) handed over to ICG.
• Handed over first 'Closed Inter Tank Structure (C32)' and first 'Development
Service Module' for the Gaganyaan Experimental Mission of ISRO.
• A Joint Venture Company with Safran Helicopter Engines, France-SAFHAL Helicopter
Engines Pvt. Ltd. was incorporated on 9th November, 2023 to undertake Design
and Development of Engines for IMRH.
• The first production series of LCA Mk1A fighter has completed its Maiden flight.
• Received DGCA approval under 'CAR21 Subpart G' for series production of
Hindustan 228 aircraft and 'Maintenance Type Training Certificate' under CAR147 category
B1 and B2 for imparting AME type rated licence on Hindustan-228 aircraft.
New initiatives
During the year, your Company has taken many new initiatives, which are as under:
• MoU was signed with General Electric, USA on June 6, 2023 for ToT and
Manufacturing of GE-414 aero-engine in India for LCA MK2 Aircraft.
• Successful flight with 10% blended bio-fuel was carried out on Do-228 aircraft
from September 15-27, 2023, towards the effort to reduce Carbon footprints.
• The Company has entered into agreement with M/s Airbus, France and signed a
Contract on November 9, 2023 for "Establishing up to 6 yearly C Checks facility for
A-320 family of aircraft" at Nasik. The collaboration will strengthen Make-in-India
mission and also enhance export potential, in addition to diversification into Civil MRO
business.
Future Outlook
In the Defence segment, demand for products from Indian Defence Services is expected to
grow owing to the GoI's vision for achieving Atmanirbar Bharat and current geopolitical
scenario. On the commercial side, air travel is likely to continue its upward trajectory.
The surge in air travel will lead to an increased demand for new aircraft and MRO
services.
India's annual Defence production is expected to touch '3 lakh Crore by 2028-29, along
with arms exports of '50,000 Crore, as announced by Hon'ble Rakha Mantri. This indicates
that Indian Defence Sector which was so far contributing as strategic sector is gradually
developing as an economic sector with capability & vision to contribute to the
economic growth of the Country.
Various initiatives of the Gol have given thrust on the indigenization of Defence
equipment, to reduce Defence import as well as dependence on the foreign OEMs. The role of
the private sector in Defence R&D is also increasing, driven by the policy initiatives
from the Government. To encourage R&D within the industry, by start-ups, and by
academia, the MoD has announced schemes like Innovation for Defence Excellence (iDEX),
Technology Development Fund (TDF). Over next 5 -10 years such reforms will equally help
Defence PSUs and private industry to achieve a self-sustaining Defence industry in the
country.
The future projects such as LCA MkII, Advance Medium Combat Aircraft (AMCA), Indian
Multirole Helicopter (IMRH), Twin Engine Deck Based Fighter (TEDBF) etc. will ensure
technological lead of India and HAL in particular in the years to come.
The Company has taken various initiatives to make systems more agile, effective, cost
efficient and to be competitive.
Research and Development (R&D)
Your Company has continued its efforts towards the Design and Development of new
platforms/ products / technologies and activities to enhance its capability with a view to
bring technological superiority to its products and to cope up with the future
technological challenges. During the year, Company has incurred a total R&D
expenditure of '2,82,624 Lakh which is 10.04 % of the Turnover. The significant R&D
achievements during the year are as under:
• Indigenously designed and developed HTT-40 Basic Trainer Aircraft received the
Release to Service document (RSD) from CEMILAC in January 2024.
• The Light Combat Aircraft (LCA) Naval Trainer Prototype NP5 successfully
completed its maiden flight on August 18, 2023.
• The indigenous Beyond Visual Range (BVR) air-to-air missile, successfully fired
from Light Combat Aircraft (LCA), off the coast of Goa on August 23, 2023.
Corporate Governance
Your Company always strives to conduct the business with integrity, and in ethical
& transparent manner and attain the highest standard of Corporate Governance practice.
The Company has complied with the Guidelines on Corporate Governance framed by the
Department of Public Enterprises
(DPE) and SEBI Listing Regulations except for the appointment of the requisite number
of Independent Directors. The Company has established Systems and Procedures to ensure
that its Board of Directors is well informed about the Policies of the Company, to enable
them to discharge their responsibilities and to enhance the overall value of all
stakeholders. We are periodically reviewing the Policies and Procedures of the Company and
updating them to ensure transparency in all aspects of the Company's working. Your Company
has been continuously rated 'Excellent' grade for its compliances with DPE Guidelines on
Corporate Governance.
Corporate Social Responsibility and Sustainability Development
Your Company is committed to its social responsibility. In this endeavour, the Company
has undertaken various CSR programmes and projects, towards integrating our social and
business goals in a sustainable manner in line with schedule VII of the Companies Act,
2013. An amount of '11,998 Lakh has been spent under CSR in the Financial Year 2023-24
against the CSR budget/ obligation of '10,931 Lakh.
Acknowledgement
Your Company will continue to pursue global standards, and I am confident that the
Company will achieve many milestones. We hope to attain all round success with the
continued support and guidance of all our stakeholders.
I take this opportunity to extend my sincere gratitude to the Department of Defence
Production, Defence Acquisition Council, Defence Finance, Department of Civil Aviation and
our valuable customers viz., the Indian Air Force, Indian Army, Indian Navy, Indian Coast
Guard, Border Security Force, ISRO and other Global Aviation Companies.
I also thank DGAQA, CEMILAC, Principal Controller of Defence Accounts, Principal
Director of Commercial Audit, C&AG, Auditors, Bankers, Legal Advisors, Collaborators,
Suppliers, Shareholders and other Agencies and acknowledge their contributions in our
achievements.
I am grateful to the members on the Board for their valuable guidance and acknowledge
the immense contribution and dedication of the employees of the Company at all levels.
jai hind
(C.B. Ananthakrishnan)
Director (Finance) & CFO Chairman and Managing Director (Addl Charge)
Place: Bengaluru
Date: July 23, 2024