HAL Shares Rise 2% After US-India Agreement on Engine Deliveries
The agreement focuses on resolving issues with the delivery of General Electric’s F404 engines, critical for HAL’s Tejas Mark-1A jets.
HAL has expanded its Nashik facility to increase its production capacity from 16 to 24 jets annually.
Shares of Hindustan Aeronautics Ltd. (HAL) gained nearly 2% on Friday after the US and India signed the Securities of Supplies Agreement (SOSA) during Defence Minister Rajnath Singh's visit to the US.
The agreement focuses on resolving issues with the delivery of General Electric’s F404 engines, critical for HAL’s Tejas Mark-1A jets.
Earlier this month, HAL’s shares fell due to execution challenges. The company now plans to deliver 16 LCA Mk1A jets in FY 2024-2025 and 83 by FY 2029, with the first delivery pushed from March 2024 to November 2024.
HAL has expanded its Nashik facility to increase its production capacity from 16 to 24 jets annually.
Supply chain disruptions at GE Aerospace have caused delays, leading Nomura to cut its 2025 LCA Mk1A delivery estimate from 14 to 10 jets.
HAL shares are currently up 1.3% at ₹4,831, flat over the past month but up 71% year-to-date in 2024.
