Hindustan Shipyard posts profit for third year running, aiming at mini ratna status: CMD

      09/04/2018

Hindustan Shipyard Ltd (HSL) here has posted profits for the past three years after a gap of almost four decades, and is aiming at getting the "mini ratna" tag by 2020, according to Chairman and Managing Director and Rear-Admiral (Retd) L.V. 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 69.8 crore in 2017-18 and a net profit of Rs 20.99 crore as against Rs 37.49 crore and Rs 53.77 crore respectively during the previous year. The company had posted its highest ever turnover of Rs 645 crore as against Rs 629 crore in the previous year.

He said the performance over the past three years had brought down accumulated losses and negative net worth to Rs 1,231.51 crore and Rs 619.43 crore respectively. "The past contingent liabilities are dragging down our performance and we have requested the Union Government for a debt restructuring and also a one-time grant," he said.

Order book position: The order book value for ship construction stood at Rs 132 crore, and HSL was on the verge of getting some major orders. "We are getting orders for 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.

He said HSL would get orders for five new fleet support ships (each of 45,000 tonne displacement) and the order value may be Rs 9,000-9,500 crore. "We may get the orders by December next year. Initially, we considered striking a partnership with Hyundai Shipyard for executing the order, but we have given up the idea. We are only seeking collaboration for design abroad, the ships will be built by us," he said.

Sarat Babu said HSL had submitted its bid for 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 many projects under the corporate social responsibility (CSR) scheme to contribute its mite to society. "We have taken up a green initiative. We have also installed a roof-top solar project in association with a private company, to generate 2 MWs. It is connected to the grid. We will purchase the entire power from the private developer," he added.