Financial Daily from THE HINDU group of publications
Friday, Apr 05, 2002
HAL posts Rs 305-crore profit
BANGALORE, April 4
HINDUSTAN Aeronautics Ltd (HAL) has posted a sales turnover of Rs 2,730 crore ( Rs 2,447 crore) in the 2001-2002 fiscal with a profit of Rs 305 crore (Rs 265 crore). HAL also exported goods and services to the tune of Rs 67 crore.
Mr. N.R. Mohanty, Chairman, told presspersons here on Thursday that HAL had taken measures to bring down expenditure and control recruitment.
The company has also acquired a high credit rating, which would enable it to source funds for future projects.
"We have no Government subsidy and no borrowings from the Government; but HAL will not suffer for lack of funds. Financial institutions are ready to lend us money for our projects,'' he said.
Stating that HAL was targeting a turnover of Rs 3,000 crore this fiscal (2002-2003), he said that there would be no recruitments to complete various projects; instead HAL would go for outsourcing.
"We will engage the private sector to work as partners with us,'' he added.
He said that among future projects from HAL was the Rs 25,000-crore Sukhoi 30 MkI project. This involved a capital investment of $150 million, which HAL hopes to garner from internal accruals or market borrowings.
It requires another $500 million towards deferred revenue expenditure (DRE) for tooling, test rigs and technical assistance.
"The Government will reimburse any expenses incurred towards DRE,'' he added.
He further said that the price at which an indigenous SU 30 would be sold by HAL to the Indian Air Force would be equal to or less than the imported price.
He said that the drawings and other technical documents were expected to be delivered any time and that HAL had already raised a Letter of Credit.
Each imported SU30 costs $30 million and the licence fee is $286 million. The manufacture of the 140 SU30 MkI will be undertaken by HAL in five of its divisions nationwide.
HAL expects to deliver the first batch by 2004 to the IAF and complete supply by 2007.
In all, 50 SU30 will be imported from Russia, of which the final consignment will be delivered by 2003.
HAL had targeted to complete 16 MiG21 upgrades this fiscal, but could complete only six this fiscal, he said.
"We had a lot of teething problems from outside vendors and Russia, which have been resolved now. This fiscal, we hope to complete around 21 to 24 upgrades,'' he added. HAL has also undertaken the upgrades of the MiG 27 M aircraft jointly with DRDO.
One HS748 Avro has been upgraded by the Transport Aircraft Division, Kanpur in three months; in all, 56 upgrades of Avros are planned.
Seven advanced light helicopters have been handed over to the three Services and the Coast Guards, and now, HAL is looking at completing the civil version and getting it certified this year.
A joint detailed project report for undertaking co-design and development has been finalised for the multi-role transport aircraft with Russian companies, Illyushin and Irkutsk. This project, at $350 million, would be jointly undertaken by HAL and the Russian companies.
HAL has also won a $2-million order from Israel to make conversion kits for the Boeing 737 aircraft, from passenger aircraft to cargo.
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