Tech Mahindra signs contract worth Rs 400 crore with Hindustan Aeronautics for Project Parivartan

Hindustan Aeronautics Limited (HAL) today announced during the market hours that it has signed a contract worth Rs 400 crore with Tech Mahindra.

Under this contract, Tech Mahindra will implement enterprise resource planning (ERP) to support HAL’s ‘Project Parivartan’.

The project is aimed at transforming HAL’s ERP system, serving the Armed Forces in an efficient and effective manner. Tech Mahindra would implement this project for nine years.

Hindustan Aeronautics is a public sector undertaking company that deals in aerospace and defence. It is headquartered in Bengaluru (Karnataka, India) under the management of the Indian Ministry of Defence. Besides, Tech Mahindra provides information technology and business process outsourcing services.

HAL had reported revenue of Rs 1,736.97 crore in Q1FY21 against Rs 3,291.64 crore in Q1FY20. It had reported a net profit of Rs 151.44 crore in Q1FY21 against Rs 566.14 crore in Q1FY20.

According to BSE data, the stock traded at a P/E multiple of 9.69 and a price-to-book ratio of 1.78. The share price of the company closed at Rs 696.45, down by 0.59 per cent on BSE.