and · light combat aircraft (lca) ‐make in india fighter aircraft ‐ship landing and take...

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HINDUSTAN AERONAUTICS LIMITED

CORPORATE OFFICE

CO/SEC/4(7)120201 BSE & NSE Filing/14 25th June, 2020

Dear Sin Madam,

Sub: Presentation for Q4 and FY20 Post Results Conference Callunder SEBI (Listing Obligations and Disclosure Requirements)

Regulations, 2015

Ref: BSE Scrip Code: 541154, NSE Symbol: HAL

In furtherance to our Letter No. COISECI4(7)/20201 BSE & NSE Filing/12. dated17il June, 2020 on the subject, please find enclosed herewith copy of the

Presentation, which would be discussed during the meeting.

2 The details of the said meeting and presentation is also made available onCompany s Website www.hal-india.co.in in Sub-section “Intimation to the StockExchange’ under ‘Investors” Section.

3 This is for your information and record please.

Thanking you,Yours Faithfully

For Hindustan Aeronautics Ltd

(G. V. Sesha Reddy)Company Secretary & Compliance Officer

15/1, ~ d,ae~, 3or’~c~Jad) -560001,~~ 15/1, ct~.i ~ ~I~-56O 001, c~u[~ct,, 21W1

15/1 ,Cubbon Road, Bangalore - 560 001, Karnataka, Indiaad~~ (~nw) Ph.: +91-80-2232 0001,2232 0475, ~ (4~r) Fax: +91-80-2232 0758

~ ~iee~ (~) Email : [email protected]: L35301 KA1 963G01001 622

BSE LimitedListing DepartmentPhiroze Jeejeebhoy Towers,DaIaI Street,Mumbai — 400 001

National Stock Exchange of India LtdListing DepartmentExchange Plaza, 5th Floor, Plot No C/i,G Block, Bandra-Kurla Complex,Bandra (E) Mumbai — 400051

SLIDE NO 1

COMPANY OVERVIEW

2

AUTHOR Page NoDIVISION Page No SLIDE NO 3

GLOBAL RANKING (by Revenue 2018)36th position in Aerospace company

TURNOVER (in FY 2019-20)Marks sales of Rs 21301 Crs.

PRODUCTION UNITS20 production units in India

R&D CENTRES11 Centres in India.

HAL Today

AIRCRAFT PRODUCTIONTypes - 17 Indigenous & 14 Licensed

HAL’S CONTRIBUTION80% footprint in Defence flying platforms

MANUFACTURED OVERHAULEDEngine – 5100+Aircraft – 4150+ Engine – 34250+Aircraft – 11400+


Design & Development Aircraft Helicopter Aero-Engines Systems

MANUFACTURING Aircraft Helicopter Aero-Engines Systems

MID LIFE UPGRADE

Aircraft Systems

Missile Integration

Aircraft Helicopter

Aerospace program Aerospace Structure Boosters for Launch

Vehicles Cryogenic engine

MRO Aircraft Helicopter Aero-Engines Systems

Gamut Of Capabilities

AUTHOR Page NoDIVISION Page No SLIDE NO 5Hindustan Aeronautics LimitedCorporate Planning

Products & Services

Rotary Wings

Fixed Wings

Aero‐Engines &

Gas Turbines

UAVAerospace

Accessories & Avionics


HAL – Current OperationsPlatforms

Chetak

Cheetal

Su-30 MKI

Do-228

ALH

LCA

LCH

Manufacturing & ROH

MiG Variants

Jaguar Mirage

Hawk

Kiran Mk I /MK II

Avro

An-32 Cheetah

Upgrade & ROH

ROH


R-29Adour Mk 804/811/871

1313Engine ROH

Types

HAL – Current OperationsEngines

Garrett TPE 331-5Shakti

AL 31 FP

TM Artouste III

LM 2500

Industrial Marine Gas Turbine

Aero-engines

Man

ufac

ture

& R

OH

RD 33

Dart

DESIGN AND DEVELOPMENTStrong investments into R&D

Very strong R&D division with 11 R&Dcenters

Co‐located with production divisions forease of manufacture

CEMILAC approved centers

10% of previous year’s operating profitafter tax is earmarked for R&D efforts.

Collaborations with IIT’s and IISc’s fortalent acquisition and aeronauticalresearch

Cumulative R&D Expenses of Rs. 6783Crores during last 5 years

8

11911284

1612

1464

1232

0

200

400

600

800

1000

1200

1400

1600

1800

15‐16 16‐17 17‐18 18‐19 19‐20

R&D expenses (Rs in Crs )


3‐D Modeling

Airframe Ground Test

Wind tunnel (Low speed)

• Light Helicopters• Combat Helicopters• 10‐12 ton Helicopters

Rotary Wing (Helicopter)

• Trainers / Fighters

Fixed Wing Aircraft

Accessories /Avionics / Systems

Aircraft & Helicopter Upgrades

• 3‐D Modeling• Low Speed Wind Tunnel • Airframe Ground Test Facilities• Environmental Test Facilities• Flight Test facilities

Technology/Infrastructure

R&D Capabilities

In-House Major Development Programs

10

Light Combat Aircraft (LCA)‐Make in India Fighter Aircraft ‐ Ship Landing and Take‐off Capability Proved

Light Combat Helicopter

(LCH)6 Ton Attack Helicopter

Light Utility Helicopter (LUH)

‐ 3 Ton Utility Helicopter ‐ Initial

Operational Clearance Achieved During Defexpo2020

IMRH (Indian –Multi Role Helicopter ‐ 12 Ton

‐ Preliminary Studies are Progressing

Basic Trainer Aircraft (HTT‐

40) ‐ Six‐Spin Test Completed

‐ Hot Refuelling Capability Proved

Mirage 2000 Upgrade FOC

Achieved

Jaguar Darin III Upgrade

‐ FOC Achieved in July 19 ‐ Upgraded 4 A/c

Development of Engines &

UAV. ‐MoU Signed with IAI &

DTL

AUTHOR Page NoDIVISION Page NoSLIDE NO 11

Fixed WingLIGHT COMBAT AIRCRAFT (LCA) TEJAS

ROLES

• Basic flying training

• Aerobatics • Instrument Flying, Night Flying

• Close formation

FEATURES

• Air conditioned cockpit

• Tandem seating • Zero‐Zero ejection seats

• Multifunction Displays

HINDUSTAN TURBO TRAINER (HTT-40)

ROLES•Utility Helicopter of 3 Ton class with Single engine with Night Flying

•Military and Civil Roles

FEATURES•Composite Blades & fuselage

•Advanced Cockpit Display

•Main Rotor Blade Folding and bearing less tail rotor

• Smart Cockpit Display


CHETAK

ALH

LCH

LUH

IMRH

• 3 Ton Class• ToT Mfg.• Multirole

• 5.5 Ton Class• Ind. Design• Multirole• Prod ‐ 250+

• 5.5 Ton Class• Ind. Design• Combat• IOC Achieved

• 3 Ton Class• Ind. Design• Utility• IOC Achieved

• 12 Ton Class• Ind. Design• Multirole• Under Dev.

INDIA IS AMONG FEW COUNTRIES HAVING CAPABILITY TO DESIGN, DEVELOP, MANUFACTURE AND

OVERHAUL HELICOPTERS

Rotary Wing

Page NoPage No SLIDE NO 13

Civil Aerospace

• Dhruv (ALH) Mk I civil certified by DGCA. • ALH Mk III Civil configuration

certification under progress.• Do-228 Civil certified• Type Certification by DGCA & EASA

certification is under progress..• Light Utility Helicopter under

development.• Intended for casualty evacuation/

VIP movement in civilian role..


31% 69

%

9%91%

25% 75

%

FIGHTERS TRAINERS TRANSPORT HELICOPTERSAROUND 73% IAF FLEET IS SUPPORTED BY HAL

IAF

100%

TRAINERS IN HELICOPTERSTRANSPORT

ARMY CG

AROUND 65% NAVY FLEET IS SUPPORTED BY HAL

HELICOPTERS

100% 100% 100%

TRANSPORT

100% FLEET OF ARMY AND CG IS SUPPORTED BY HAL

HELICOPTERS

76%24%

HAL HAL HAL HAL

HALHAL HAL

HAL HAL HAL

HAL’s Support to Forces

22% 78

%58%

42%

FINANCIAL PERFORMANCE AND SUMMARY

15

MAJOR HIGHLIGHTS OF 2019‐20

16

Registered Growth of 7.5% in Turnover over corresponding previous year (Rs. 21301 Crores from Rs. 19816Crores)

Growth of 6% in Profit Before Tax over corresponding previous year. (Rs. 3961 Crores from Rs. 3743 Crores)

Growth of 22% in Profit After Tax over corresponding previous year due to improved Profit margins andchange in the Tax Rate. (Rs. 2857 Crores from Rs. 2347 Crores)

Declared Interim Dividend of Rs. 33.25 per equity share i..e 332% amounting to Rs. 1340 Crs (includingDividend Distribution Tax).

Dues of Rs. 18041 Crores was collected from Defence Forces during 2019‐20.

Utilization of Working Capital Limits was at Rs. 5497 Crores against the sanctioned limit of Rs. 10,000 Crores.


17

Rs In Crs

16586

17605

18284

19816

21301

15000

16000

17000

18000

19000

20000

21000

22000

15‐16 16‐17 17‐18 18‐19 19‐20

Turnover Over The Years

CAGR ‐ 5.75%CAGR ‐ 5.75% YoY – 7.50%YoY – 7.50%

9807 9346 9264 8427 8544

5684 7144 7386 975611681

649 6501320

1228

864

446465

314

405

212

0

5000

10000

15000

20000

15‐16 16‐17 17‐18 18‐19 19‐20

Activity‐Wise Turnover

Manufacturing ROH Development& Others

Exports

ROH has Recorded CAGR of 19.73%

16586 17605 18284 19816 21301


18

Rs In Crs

1185 1607 2728 2736 318318742900

2331 259633692557

35164108 4120

4429

10970

95819117

1036410320

‐3000

2000

7000

12000

17000

22000

2015‐16 2016‐17 2017‐18 2018‐19 2019‐20

Sales: Q‐on‐Q‐ Comparison

Q1 Q2 Q3 Q4

7% 9%15% 14% 15%

11%16%

13% 13% 16%15%

20%22% 21%

21%

66%54% 50% 52% 48%

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

2015‐16 2016‐17 2017‐18 2018‐19 2019‐20

% of Quarterly Sales to Yearly Sales

Q1 Q2 Q3 Q4


19

3,207

3,583

3,240

3,743

3,961

2000

2500

3000

3500

4000

4500

15‐16 16‐17 17‐18 18‐19 19‐20

Profit Before Tax (PBT)

Rs In Crs

YoY – 6%CAGR – 5.28%

1648

2670 26003485 3779

1549

890640

25863

28

170347

863713 946

1024998

11924.64%

0%

5%

10%

15%

20%

25%

30%

0

1000

2000

3000

4000

5000

6000

15‐16 16‐17 17‐18 18‐19 19‐20

EBDITA & EBDITA Margin (%)

Operating Profit Interest Income

Interest Expenditure Depreciation & Amortisation

Exceptional Items EBITDA Margin (%)

CAGR – 6.73% YoY – 7.4%


20

Rs In Crs

1998

2616

19872347

2857

12%

15%

11%12%

13%

0%

2%

4%

6%

8%

10%

12%

14%

16%

0

500

1000

1500

2000

2500

3000

15‐16 16‐17 17‐18 18‐19 19‐20

PAT and PAT Margin(%)

PAT PAT Margin

•PAT Margin = PAT/ Revenue from Operations• 19‐20 includes compensation from BMRCL of Rs. 119 Crores.

41

72

56

70

85

0

10

20

30

40

50

60

70

80

90

15‐16 16‐17 17‐18 18‐19 19‐20

Earnings Per Share (Rs. )


21

Rs In Crs

Dividend Payout Ratio = Total Dividends Paid (including taxes)/ PAT ROE = PAT/ Average Net Worth

614

1104

1295

798

1342

31%

42%

65%

34%

47%

20%

25%

30%

35%

40%

45%

50%

55%

60%

65%

70%

0

200

400

600

800

1000

1200

1400

15‐16 16‐17 17‐18 18‐19 19‐20

Dividend & Dividend Pay Out Ratio (%)

Dividend including Tax Dividend Payout Ratio

1295611778

11011 1078012645

15%

22%

18%

22% 23%

0%

5%

10%

15%

20%

25%

0

2000

4000

6000

8000

10000

12000

14000

15‐16 16‐17 17‐18 18‐19 19‐20

Equity vs Return on Equity (ROE) ‐ (%)

Avg Equity ROE (PAT/Average Networth)


22

Rs In Crs

48364220

6751

1244711507

10688

135

231

197

0

50

100

150

200

250

0

2000

4000

6000

8000

10000

12000

14000

15‐16 16‐17 17‐18 18‐19 19‐20

Trade Receivables in No of Days of Turnover

Trade Receivables No of Days

55547 5262045297

37240

75106824

12088

14454

1054 13211020

1052

502359 183

219

0

10000

20000

30000

40000

50000

60000

70000

31.03.2017 31.03.2018 31.03.2019 31.03.2020

Order Book ‐ Activity‐Wise

Manufacturing ROH & Spares Development Exports

64613 61124 58588 52965


23

Rs In Crs

2399821340

19375 19765 19460

511

455

403 389

345

0

100

200

300

400

500

600

0

5000

10000

15000

20000

25000

30000

15-16 16-17 17-18 18-19 19-20

Inventory & Inventory in No of Days to VOP

Inventory No of Days of Inventory to VoP

14301514

14521510 1509

0

200

400

600

800

1000

1200

1400

1600

15‐16 16‐17 17‐18 18‐19 19‐20

CAPEX

CoVID‐19 Impact

24

Since HAL is mainly to Defence Services, major negative impact on the futurebusiness in the long term is not anticipated currently.

Downsizing of Defence budget and risk of economic recession may have an impacton the operations of the Company.

On the positive side, ‘Atmanirbhar Bharat Abhiyan’ led by the Government is givingsignificant impetus to self-reliance and local production which may favourablyimpact the operations of the Company as the Defence Services may demand HALproducts like LCH, LUH, HTT-40, LCA etc.

SUMMING UP

Stable Financial Position with consistent growth year on year.

Platforms viz. LCH, LUH, HTT-40, LCA Mk-1 have completed the Development Phase and areentering the production Phase.

Good Order Book Position with prospects for further additions.

Share of Repair & Overhaul of Aircrafts and Rotables likely to improve.

New Orders Anticipated for 83 LCA and 15 LCH.

Strong Research and Development Capabilities Resulting in more Indigenously Designed andDeveloped Platforms to offer more products in the Domestic and Export Market.

25

Thank You

26

and · light combat aircraft (lca) ‐make in india fighter aircraft ‐ship landing and take...

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