04-09-2018

India: Hind Shipyard posts profit for 3rd year

Hindusthan Shipyard Ltd (HSL) has posted profits for the past three consecutive years, and is aiming to get the ‘Mini Ratna’ tag by 2020, according to Chairman and Managing Director LV Sarat Babu.

He was reviewing the performance of the shipyard at a media conference here on Monday. He said HSL had earned an operating profit of Rs. 69.80 crore in 2017-18 and a net profit of Rs. 20.99 crore against Rs. 37.49 crore and Rs. 53.77 crore, respectively, the previous year.

He said HSL had posted the highest-ever turnover of Rs. 645 crore against Rs. 629 crore during the previous year. Sarat Babu said thanks to this performance the last three years, HSL’s accumulated loss and the negative net worth had been reduced.

“The past contingent liabilities are dragging down our performance and we have requested the Union Government for debt restructuring and also a one-time grant.” The order book value for ship construction on date is only Rs. 132 crore, but HSL might bag some major orders.

“We are getting orders for the construction of four 50-tonne tugs worth roughly Rs. 300 crore and two diving support vessels each costing roughly Rs. 1,000 crore. Price negotiations are over and the contracts may be signed by next month,” he said.

Design collaboration

Sarat Babu said HSL will get orders for five new fleet-support ships (each of 45,000 tonnes displacement) and the value of the order may be Rs. 9,000-9,500 crore. “We may get the orders by December next year. We have given up the initial idea of having a partnership with Hyundai Shipyard for executing the order. At present, we are only seeking collaboration abroad for design, the ships will be built by us,” he said.

Sarat Babu said HSL had submitted its bid for the medium refit licence certification of submarine INS Sindhuratna. The technical evaluation of the bid had been concluded and “we are hoping to get the order. We have gained enough expertise in submarine repair and retrofitting.”

He said HSL was also taking up projects under the corporate social responsibility (CSR) scheme to contribute to society.

“We have taken up a green initiative and installed a roof-top solar project, in association with a private company, to generate 2 MW. It is connected to the grid. We will purchase the entire power from the private developer,” he said.

Source: The Hindu Business Line

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