Bengaluru:India‘s state-run aircraft-maker Hindustan Aeronautics Limited‘s (HAL’s) ratings from CARE Ratings Limited has seen an improvement, with the rating agency upgrading it to ‘CARE AAA Outlook Stable‘.
“The CARE Ratings Limited has upgraded the present HAL long-term ratings from ‘CARE AA+ Outlook Stable’ to ‘CARE AAA Outlook Stable’. HAL’s Short Term rating has remained the same as A1+,” the defence public sector company said in a statement today.
This is done on the basis of recent developments including operational and audited financial performance of HAL for the financial year 2020-21 and the unaudited first quarter of 2021-22.
The financial year 2020-21 was significant for HAL in terms of securing the largest-ever defence contract for supplying 83 Light Combat Aircraft MK-IA to the Indian Air Force.
“This helped the company surpass the order book position in excess of Rs. 80,000 crore ($10.9 billion). HAL has taken various cost cutting and austerity measures that include indigenisation of various components, increasing outsourcing efforts and rationalisation of manpower.”