Hindustan Aeronautics Ltd (HAL) has been rallying pretty strongly since morning, with the stock figuring among the top five gainers on the BSE since opening bell.
The stock opened over 2.5% higher at Rs.785.20 and rose to an intraday high at Rs.821.80, going up around 7.5%. It has a 20% UC and today is at Rs.918.30.
Despite the labor unrest, the market is thrilled to bits with its numbers for Q2FY20. It posted a whopping 116% (YoY) jump in consolidated net profit at Rs.622 crore on a 32% rise in net revenue at Rs.3451 crore. What really helped was the deferred tax write back of Rs.184 crore an even the current tax paid of for the quarter was down 34% at Rs.44 crore v/s Rs.128 crore (YoY).
There was an exceptional item of Rs 5.51 crore which is compensation received from the Office of Special Land Acquisition Officer, Bangalore under KIADB Act, on acquisition of 12,304.64 sq.mtrs (3.04 acres)of HAL land at Beninganahalli village, Bangalore by Bangalore Metro Rail Corporation.
On an equity of Rs.334 crore, H1FY20 EPS is at Rs.35.50 (FV of Rs.10).
Meanwhile on the labor unrest front, the labour union has challenged the High Court order of 22nd Oct which restrained them from continuing with the strike.
HAL management claimed that meetings have been inconclusive and the latest offer is 12% hike in salary and 25% in perks.