Through this partnership, Rolls-Royce aims to strengthen the ecosystem for Adour engines in India by building on HAL's existing capabilities for manufacturing and supporting the Adour engines for Indian customers over several decades. This follows the MoU signed by Rolls-Royce and HAL during the Aero India 2021 to establish an authorized maintenance centre for Adour at HAL to support international military customers and operators.

R. Madhavan, CMD, HAL said, "With over 30 years' experience of supporting repair and maintenance services for the Adour engines in India, HAL has the capability and capacity to support a large defence customer base. This is the first order for supply of spares for the Adour global supply chain.

We plan to be a key player in the supply chain of Adour engines and expect more orders to follow. We look forward to working with Rolls-Royce to build on this capability to serve global market for supply of spares and maintenance repair & operations (MRO) of Adour engines. This new partnership will create avenues for the two companies to expand the defence sourcing footprint in India."

In an investor presentation filed with the bourses today, HAL said that first quarter (Q1 FY22) performance of the company was affected due to the second wave of COVID-19. However, the company expects to return to normalcy during the remaining period of the year.

The company's financial position is stable with consistent growth year-on-year and its cash surplus keeps improving, HAL said.

It further added that the government' push for Atmanirbhar Bharat and positive indigenisation list are providing boost to HAL's business.

The company's order book currently stands strong, with prospects for further additions.

As per media reports, the government is likely to launch an offer for sale (OFS) for HAL this month. The Central Government is looking to sell a 0.15% stake or around five lakh shares through the OFS. It may look at offloading more than 0.15% if there is strong market demand. It has asked bankers to give a report on market demand for the HAL OFS, reports added.

HAL is engaged in carrying out design, development, manufacture, repair and overhaul of aircraft, helicopter, engines and related systems like avionics, instruments and accessories primarily serving Indian defence programme. As of 30 June 2021, the Government of India held 75.15% stake in HAL.

On a consolidated basis, HAL posted a 31% rise in net profit to Rs 194.71 crore on a 7% decline in net sales to Rs 1,615 crore in Q1 FY22 over Q1 FY21.

The scrip rose 0.43% to end at Rs 1410.80 on the BSE on Tuesday.