Winning Bizness Desk
Mumbai. Hindustan Aeronautics Limited (HAL), one of India’s premier public sector undertakings (PSUs), has been granted the prestigious ‘Maharatna’ status by the Government of India. This recognition elevates HAL to become the 14th company in India to achieve this honor. The announcement was made by the Department of Public Enterprises (DPE), which confirmed that the approval for HAL’s upgrade was given by Finance Minister Nirmala Sitharaman. The decision to award HAL the Maharatna status was recommended by an Inter-Ministerial Committee (IMC) led by the Finance Secretary and further reviewed by an Apex Committee chaired by the Cabinet Secretary.
Benefits of Maharatna Status
With this status, HAL gains significant autonomy, investment capability, and strategic flexibility. The company can now invest up to ₹5,000 crore or 15% of its net worth in a single project without needing government approval. Additionally, HAL will have the freedom to engage in mergers, acquisitions, and strategic investments, both domestically and internationally. This enhanced independence is expected to help HAL grow its operations and explore new opportunities, further strengthening its position as a leader in defense production.
HAL’s Financial Performance
HAL, a Central Public Sector Enterprise (CPSE) under the Department of Defense Production, reported impressive financial performance for the 2023-24 fiscal year. The company registered an annual turnover of ₹28,162 crore and a net profit of ₹7,595 crore. HAL has also been a strong performer in the stock market, delivering a remarkable return of 125% over the past year. Despite a slight dip on Friday with shares closing 0.94% lower at ₹4,440, HAL’s stock has grown by 22% over the last six months, and it has achieved a return of 57.09% since the beginning of 2024. The company’s market capitalization currently stands at ₹2.97 lakh crore.
Growing List of Maharatna Companies
HAL joins an elite group of PSUs that have been granted Maharatna status, a designation given to companies that demonstrate exceptional performance and significant influence in the Indian economy. The list of Maharatna companies now includes:
1. National Thermal Power Corporation (NTPC)
2. Oil and Natural Gas Corporation (ONGC)
3. Steel Authority of India Limited (SAIL)
4. Bharat Heavy Electricals Limited (BHEL)
5. Indian Oil Corporation Limited (IOCL)
6. Hindustan Petroleum Corporation Limited (HPCL)
7. Coal India Limited (CIL)
8. GAIL India Limited
9. Bharat Petroleum Corporation Limited (BPCL)
10. Power Grid Corporation of India Limited
11. Power Finance Corporation (PFC)
12. Rural Electrification Corporation (REC) Limited
13. Oil India Limited (OIL)
14. Hindustan Aeronautics Limited (HAL)
The addition of HAL to this list underscores the company's critical role in India's defense sector and its consistent growth trajectory, positioning it for even greater achievements in the future.
