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HINDUSTAN AERONAUTICS LIMITED
CORPORATE OFFICE

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

BSE Limited National Stock Exchange of India Ltd

Listing Department Listing Department
Phiroze Jeejeebhoy Towers, Exchange Plaza, 5th Floor, Plot No C/i,
DaIaI Street, G Block, Bandra-Kurla Complex,
Mumbai 400 001
— Bandra (E) Mumbai 400051
—

Dear Sin Madam,

Sub: Presentation for Q4 and FY20 Post Results Conference Call

under 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. dated
17il 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 on
Company s Website www.hal-india.co.in in Sub-section “Intimation to the Stock
Exchange’ 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, India
-

ad~~ (~nw) Ph.: +91-80-2232 0001,2232 0475, ~ (4~r) Fax: +91-80-2232 0758
~ ~iee~ (~) Email : cosec@hal-india.co.jn
CIN: L35301 KA1 963G01001 622
SLIDE NO 1
COMPANY OVERVIEW

2
 HAL Today

GLOBAL RANKING (by Revenue 2018) TURNOVER (in FY 2019-20)

36th position in Aerospace company Marks sales of Rs 21301 Crs.

PRODUCTION UNITS R&D CENTRES

20 production units in India 11 Centres in India.

AIRCRAFT PRODUCTION HAL’S CONTRIBUTION

Types - 17 Indigenous & 14 Licensed 80% footprint in Defence flying platforms

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

AUTHOR
DIVISION Page No SLIDE NO 3
 Gamut Of Capabilities

Design & Development MRO

 Aircraft  Aircraft
 Helicopter  Helicopter
 Aero-Engines  Aero-Engines
 Systems  Systems

MANUFACTURING Aerospace program

 Aircraft  Aerospace Structure
 Helicopter  Boosters for Launch
 Aero-Engines Vehicles
 Systems  Cryogenic engine

MID LIFE UPGRADE Missile Integration

 Aircraft  Aircraft
 Systems  Helicopter

AUTHOR
DIVISION Page No SLIDE NO 4
 Products & Services

Fixed  Rotary 
Wings Wings

Aero‐
Accessories  Engines & 
& Avionics Gas 
Turbines

Aerospace UAV

AUTHOR
DIVISION Corporate Planning
Hindustan Aeronautics Limited Page No SLIDE NO 5
 HAL – Current Operations
Platforms

MiG Variants Kiran Mk I /MK II

Su-30 MKI ALH

Cheetal Avro Hawk

LCA

An-32 Cheetah
Do-228 Chetak ROH

LCH
Jaguar Mirage
Manufacturing & ROH
Upgrade & ROH
AUTHOR
DIVISION Page No SLIDE NO 6
 HAL – Current Operations
Engines
Aero-engines
Industrial Marine

Manufacture
Gas Turbine

& ROH
Shakti TM Artouste III Garrett TPE 331-5

LM 2500

AL 31 FP RD 33

13
Types
Engine ROH Adour Mk 804/811/871 Dart R-29

AUTHOR
DIVISION Page No SLIDE NO 7
DESIGN AND DEVELOPMENT
Strong investments into R&D R&D expenses (Rs in Crs )
Very strong R&D division with 11 R&D 1800
centers 1612
1600
1464
Co‐located with production divisions for
1400
ease of manufacture 1284
1232
1191
1200
CEMILAC approved centers
10% of previous year’s operating profit 1000
after tax is earmarked for R&D efforts. 800
Collaborations with IIT’s and IISc’s for
600
talent acquisition and aeronautical
research 400

Cumulative R&D Expenses of Rs. 6783 200

Crores during last 5 years
0
15‐16 16‐17 17‐18 18‐19 19‐20
8
 R&D Capabilities
Rotary Wing (Helicopter)
• Light Helicopters
• Combat Helicopters 3‐D Modeling
• 10‐12 ton Helicopters

Fixed Wing Aircraft
• Trainers / Fighters 

Accessories /Avionics / Systems
Airframe Ground Test
Aircraft & Helicopter Upgrades      

Technology/Infrastructure
• 3‐D Modeling
• Low Speed Wind Tunnel  Wind tunnel 
• Airframe Ground Test Facilities (Low speed)
• Environmental Test Facilities
• Flight Test facilities

AUTHOR
DIVISION Page No SLIDE NO 9
In-House Major Development Programs

Light Combat  Light Combat  Light Utility  IMRH (Indian  Basic Trainer  Mirage 2000  Jaguar Darin  Development 

Aircraft (LCA) Helicopter  Helicopter  –Multi Role  Aircraft (HTT‐ Upgrade  III Upgrade of Engines & 
‐ Make in  (LCH) (LUH) Helicopter  40)   FOC  ‐ FOC  UAV.  
India Fighter  6 Ton Attack  ‐ 3 Ton Utility  ‐ 12 Ton  ‐ Six‐Spin Test  Achieved  Achieved in  ‐ MoU Signed 
Aircraft  Helicopter  Helicopter   ‐ Preliminary  Completed  July 19  with IAI & 
‐ Ship  ‐ Initial  Studies are  ‐ Hot  ‐ Upgraded 4  DTL 
Landing and  Operational  Progressing  Refuelling  A/c
Take‐off  Clearance  Capability 
Capability  Achieved  Proved  
Proved  During 
Defexpo
2020 

10
 Fixed Wing
LIGHT COMBAT AIRCRAFT (LCA) TEJAS

ROLES FEATURES
• Utility Helicopter of  • Composite Blades & 
3 Ton class with  fuselage
Single engine with  • Advanced Cockpit 
Night Flying Display
• Military and Civil  • Main Rotor Blade 
Roles Folding and bearing 
less tail rotor
• Smart Cockpit 
Display

ROLES FEATURES
• Basic flying  • Air conditioned 
training   cockpit 
• Aerobatics  • Tandem seating 
• Instrument  • Zero‐Zero 
Flying, Night  ejection seats 
Flying • Multifunction 
• Close formation Displays

HINDUSTAN TURBO TRAINER (HTT-40)

AUTHOR
DIVISION Page No SLIDE NO 11
 Rotary Wing

IMRH

LUH

LCH

ALH • 12 Ton Class
• Ind. Design
• 3 Ton Class • Multirole
CHETAK
• Ind. Design • Under Dev.
• 5.5 Ton Class • Utility
• Ind. Design • IOC Achieved
• 5.5 Ton Class • Combat
• Ind. Design • IOC Achieved

• 3 Ton Class • Multirole
INDIA IS AMONG FEW COUNTRIES
• ToT Mfg. • Prod ‐ 250+
HAVING CAPABILITY TO DESIGN,
• Multirole DEVELOP, MANUFACTURE AND
OVERHAUL HELICOPTERS

AUTHOR
DIVISION Page No SLIDE NO 12
 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.

Page No SLIDE NO 13
 HAL’s Support to Forces

9% 25 22
% % 42
91 75 78 58
HAL HAL HAL %
HAL
% % % %

IAF FIGHTERS TRAINERS TRANSPORT HELICOPTERS

AROUND 73% IAF FLEET IS SUPPORTED BY HAL

31 24%
HAL 100% % 69
HAL
76%
% HAL

IN TRAINERS TRANSPORT HELICOPTERS

AROUND 65% NAVY FLEET IS SUPPORTED BY HAL

HAL 100% HAL 100% HAL 100%

ARMY HELICOPTERS CG TRANSPORT HELICOPTERS

100% FLEET OF ARMY AND CG IS SUPPORTED BY HAL

AUTHOR
DIVISION Page No SLIDE NO 14
FINANCIAL PERFORMANCE AND SUMMARY

15
MAJOR HIGHLIGHTS OF 2019‐20
Registered Growth of 7.5% in Turnover over corresponding previous year (Rs. 21301 Crores from Rs. 19816
Crores)

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 and
change 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 (including
Dividend 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.
16
 FINANCIAL PERFORMANCE AND SUMMARY Rs In Crs

Turnover Over The Years Activity‐Wise Turnover 
22000
212
21301 20000 864
405
21000 1228
314
465
446 1320
649 650
20000 19816 15000
11681
7144 7386 9756
5684
19000
10000
18284

18000
17605

5000 9807 9346 9264

17000 8427 8544
16586

16000 16586 17605 18284 19816 21301

0
15‐16 16‐17 17‐18 18‐19 19‐20

15000 Manufacturing ROH Development Exports

15‐16 16‐17 17‐18 18‐19 19‐20 &  Others

CAGR ‐ 5.75% YoY – 7.50% ROH has Recorded CAGR of 19.73%  17

 FINANCIAL PERFORMANCE AND SUMMARY Rs In Crs

Sales: Q‐on‐Q‐ Comparison % of Quarterly Sales to Yearly Sales

22000 100%

90%

17000 80%
10320 50% 52% 48%
54%
10364 70%
9117 66%
9581 60%
12000
10970
50%
4429
40% 21%
7000 4108 4120 22% 21%
20%
3516
30%
2557 3369 15%
2331 2596 16%
2900 20% 13% 13%
2000 1874 16%
2728 2736 3183 11%
1185 1607 10%
15% 14% 15%
7% 9%
2015‐16 2016‐17 2017‐18 2018‐19 2019‐20 0%
‐3000 2015‐16 2016‐17 2017‐18 2018‐19 2019‐20
Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4

18
 FINANCIAL PERFORMANCE AND SUMMARY Rs In Crs

Profit Before Tax (PBT)  EBDITA & EBDITA Margin (%) 
4500 6000 30%
119
24.64%
5000 25%
4000
3,961 998
1024
347
3,743 4000 170 20%
713 63
3,583 863 946 258
3500 890 28
3000 640 15%
3,207 3,240
1549
2000 3779 10%
3000 3485
2670 2600
1000 5%
1648
2500
0 0%
15‐16 16‐17 17‐18 18‐19 19‐20

2000 Operating Profit Interest Income

15‐16 16‐17 17‐18 18‐19 19‐20 Interest Expenditure Depreciation & Amortisation
Exceptional Items EBITDA Margin (%)

CAGR – 5.28% YoY – 6% CAGR – 6.73% YoY – 7.4% 19

 FINANCIAL PERFORMANCE AND SUMMARY Rs In Crs

PAT and PAT Margin(%)  Earnings Per Share (Rs. ) 
3000 16% 90 85
15%
14% 80
2500 13% 72
11% 70
12% 12% 12% 70
2000
10% 60 56

1500 8% 50
2857
2616 41
2347 6% 40
1000 1998 1987
4% 30
500 20
2%

0 0% 10
15‐16 16‐17 17‐18 18‐19 19‐20
0
PAT PAT Margin 15‐16 16‐17 17‐18 18‐19 19‐20

•PAT Margin = PAT/ Revenue from Operations
• 19‐20 includes compensation from BMRCL of Rs. 119 
Crores.   20
 FINANCIAL PERFORMANCE AND SUMMARY Rs In Crs

Dividend & Dividend Pay Out Ratio (%) Equity vs Return on Equity (ROE) ‐ (%)

14000 25%
1400 1342 70% 22% 23%
1295 22%
65% 65% 12000
1200 1104 20%
60%
10000 18%
1000 55%
15%
798 50% 15%
800 8000
47% 45%
614
600 42% 12956 12645
40% 6000 11778
11011 10780 10%
400 34% 35%
31% 30% 4000
200
25% 5%
2000
0 20%
15‐16 16‐17 17‐18 18‐19 19‐20
0 0%
15‐16 16‐17 17‐18 18‐19 19‐20
Dividend including Tax Dividend Payout Ratio Avg Equity ROE (PAT/Average Networth)

Dividend Payout Ratio = Total Dividends Paid (including taxes)/ PAT  ROE = PAT/ Average Net Worth  21
 FINANCIAL PERFORMANCE AND SUMMARY Rs In Crs

Trade Receivables in No of Days of Turnover Order Book ‐ Activity‐Wise

14000 250 70000 502
231 1054
12447 1321 359
183
12000 11507 60000 1020
7510 219
197 200 6824
1052
10000 50000 12088

135 14454
150
8000 40000
6751
106
6000 88 30000
4836 100 55547 52620
4220 45297
4000 20000
37240
50
2000 10000

64613 61124 58588 52965

0 0 0
15‐16 16‐17 17‐18 18‐19 19‐20 31.03.2017 31.03.2018 31.03.2019 31.03.2020
Trade Receivables No of Days Manufacturing ROH & Spares Development Exports

22
 FINANCIAL PERFORMANCE AND SUMMARY Rs In Crs

Inventory & Inventory in No of Days to VOP CAPEX

30000 600 1600
1514 1510 1509
1430 1452
511
25000 500 1400
455

403 389
1200
20000 400

345 1000

15000 300
800
23998
21340
10000 19375 19765 19460 200 600

400
5000 100

200
0 0
15-16 16-17 17-18 18-19 19-20
0
Inventory No of Days of Inventory to VoP 15‐16 16‐17 17‐18 18‐19 19‐20
23
CoVID‐19 Impact

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

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

On the positive side, ‘Atmanirbhar Bharat Abhiyan’ led by the Government is giving
significant impetus to self-reliance and local production which may favourably
impact the operations of the Company as the Defence Services may demand HAL
products like LCH, LUH, HTT-40, LCA etc.
24
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 are
entering 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 and
Developed Platforms to offer more products in the Domestic and Export Market.

25
Thank You

26