Financial Daily from THE HINDU group of publications
Saturday, May 27, 2006
Financial Daily from THE HINDU group of publications Saturday, May 27, 2006 |
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Corporate
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Interview Logistics - Shipping ABG Shipyard to raise $100 m for expansion
Mr Rishi Agarwal, Managing Director of ABG Shipyard, says the company is looking at raising $100 million for expansion. Its current orders on hand stand at Rs 2,200 crore. He further adds that the oil and gas fleet replacement would lead to further growth. Mr Agarwal also states that the Government's subsidy contribution to the company this year stands at Rs 70 crore. Excerpts from CNBC-TV18's exclusive interview with Mr Agarwal: Where were margins at for this quarter and can you hold them for the next few quarters? Margins for this quarter have been encouraging. We have seen good growth even in revenues; we have gone up Rs 547 crore for the full year. EBITDA margins are up Rs 146 crore and we have seen a quarter profit of around Rs 30 crore for this quarter, which is up by almost 50 per cent. Although I can't speak much about the future, the orders on hand now are around Rs 2,200 crore. This could be a good indicator of what lies ahead. Could you tell us about your export performance and what are you seeing going ahead? Largely, the ships that we built are exported to Scandinavian countries such as Norway and Denmark. There is a growing market in West Asia as well. A lot of ship owners there are growing their fleet because of growth in the oil and gas service sector. Ships related to that sector have been growing in demand because their ships are getting old. Hence, there is a large fleet replacement requirement, which we are catering to, and that has helped our growth in volumes and orders. We expect this sector to grow further in the years to come.
What are you raising the money for and is it decided whether you are going to do an ADR or a private placement? We have not decided yet and we are evaluating all the options. We are looking at raising around $100 million for further expansion.
More Stories on : Interview | Shipping | Overseas Borrowings
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