Maintaining growth momentum, Hindustan Shipyard Limited has achieved a net profit of ₹36 crore and operating profit of ₹68 crore during 2018-19

This was the fourth consecutive time the Ministry of Defence public sector undertaking achieved net profit and operating profit – the first time since its inception.

Announcing financial results approved for the year under review at the AGM, HSL Chairman and Managing Director Rear Admiral L.V. Sarat Babu told reporters on Saturday that the company’s net profit and operating profit increased from previous year’s ₹21 crore and ₹70 crore.

The net profit was ₹19 crore in 2015-16 when the operating profit was ₹13 crore. It increased to ₹54 crore and ₹37 crore respectively in 2016-17.

Mr. Sarat Babu said during 2018-19, they had excelled in business segments of shipbuilding, ship repair and submarine refit achieving value of production to the tune of ₹595 crore.

In the shipbuilding front, the yard has delivered seven vessels which included one Inshore Patrol Vessel to Indian Coast Guard, one 50 ton bollard pull tug to Deendayal Port Trust, three 10 ton BP tugs to Indian Navy and two pontoons to Naval Dockyard, Visakhapatnam. Other projects on-hand such as the support vessels to Navy and balance three 10 ton BP tugs are at advanced stage of construction.

On ship repair front, the yard has undertaken repair of 12 vessels of different types for Navy, DCIL, SCI and VPT. The yard has also been aggressively participating in various ship repair tenders. Submarine division is doing well with normal refit of INS Sindhuvir progressing as per schedule. It is due for delivery in November post harbour and other trials.

Order Book Position

Mr. Sarat Babu said they had revamped the Business Development Department to submit bids in an effective way. The shipyard, he said, had turned around in securing orders in competitive bidding process. It emerged as the lowest bidder in four tenders during the past two years.

During FY 2018-19, HSL signed two major shipbuilding contracts with Navy for two Diving Support Vessels at a cost of ₹2,390 crore in addition to four 50 ton BP tugs worth ₹260 crore. HSL signed contract for building three flap gates for ₹20 crore at Naval Dockyard-Visakhapatnam. The order book position of the company increased to ₹2689.10 crore as on March 31, 2019.

Future Projects

The CMD said HSL had been nominated for construction of five Fleet Support Ships at a cost of ₹9,045 crore (pre-revised). It has finalised Anadolu Shipyard (ADIK) of Istanbul as its design collaborator through a global tender. The contract is likely to be signed during the financial year after which the yard will submit commercial bids to the Navy.

HSL is also nominated to construct two Special Operation Vehicles worth ₹5,000 crore for the Navy. The yard is in the process of finalising RFP and floating global tender for toying up with a design collaborator for the project.