Shares of Hindustan Aeronautics (HAL), public sector aerospace and defence firm, climbed 10% after the company reported a massive upsurge in its profit for the fourth quarter.

What Happened: HAL posted a consolidated profit of ₹4,308.7 crore in the quarter ended March 31, which was 52% higher than the ₹2831.2 crore it had earned in the same quarter last year.

The company’s revenue from operations also saw a substantial surge, rising by 18% year-on-year to ₹14,768.70 crore for the quarter ending March, compared with the ₹12,494.7 crore reported a year ago.

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Most analysts have a bullish stance on the stock given expectations of a large jump in its orderbook and revenue as large military orders are likely to come its way due to the Indian defence force’s depleting fleet, a robust supply chain and ready capacity.

In April the Defence Ministry placed an order with HAL for 97 LCA Mark 1A fighter jets in a deal worth over ₹65,000 crore to replace some of its outdated fleet.

Price Action: HAL’s share price surged 10% to 4,602 in late afternoon trade on Thursday following the results.

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