HAL in focus after securing second GE-404 engine for LCA project, reports say
Published on 15/07/2025 01:37 PM
HAL in focus after securing second GE-404 engine for LCA project, reports sayState-run Hindustan Aeronautics Ltd. (HAL), which is manufacturing the aircraft, is expected to receive a total of 12 GE-404 engines by the end of the current financial year.By CNBCTV18.com July 15, 2025, 1:37:34 PM IST (Published)2 Min ReadIndia has received the second GE-404 engine from the US for its LCA Mark 1A fighter jet programme, according to defence officials told news agency ANI.
State-run Hindustan Aeronautics Ltd. (HAL), which is manufacturing the aircraft, is expected to receive a total of 12 GE-404 engines by the end of the current financial year.
These engines will be installed on the LCA Mark 1A jets, 83 of which have already been ordered by the Indian Air Force. A proposal to procure an additional 97 jets is currently at an advanced stage, following clearance from the Defence Ministry.
HAL had earlier informed CNBC-TV18 that it expected the delivery of the second engine by the end of July.
Speaking to CNBC-TV18, HAL Chairman and Managing Director DK Sunil said the company expects to close a ₹2,000 crore order for Dornier aircraft within this year.
He also confirmed that the upgrade programme for 84 Sukhoi-30 jets, recently cleared by the Defence Acquisition Council (DAC), is expected to cost around ₹65,000 crore and will take approximately five years to complete.
The first Light Combat Helicopter (LCH) under this programme is expected to be rolled out in FY28.
Separately, HAL has announced a final dividend of ₹15 per equity share for FY25, translating into a 300% payout on its face value. The record date for determining shareholder eligibility is set for Thursday, August 21.
With a 71.64% stake in HAL, the government stands to receive ₹718.6 crore from this payout.
This comes on top of an interim dividend of ₹25 per share declared in February, making it the second dividend distribution for the fiscal. In FY24, HAL had announced a final dividend of ₹13 per share.
HAL reported its March-quarter earnings on May 14. Net profit came in at ₹3,958 crore, down 7.8% year-on-year but higher than analyst estimates of ₹2,592 crore. Revenue declined 7.2% to ₹13,700 crore, also beating the provisional forecast of ₹13,118 crore.
EBITDA stood at ₹5,292 crore, with operating margins of 38.6%, exceeding street expectations. The company aims to build an order book worth ₹2.6 lakh crore by FY26.
Shares of HAL are currently trading flat at ₹4,900 apiece. The stock is up 18% on a year-to-date basis.Continue ReadingCheck out our in-depth Market Coverage, Business News & get real-time Stock Market Updates on CNBC-TV18. Also, Watch our channels CNBC-TV18, CNBC Awaaz and CNBC Bajar Live on-the-go!TagsHindustan AeronauticsHindustan Aeronautics Limited (HAL)Hindustan Aeronautics Ltd (HAL)