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Hindustan Shipyard Ltd here is set to wipe out losses with its plea for financial restructuring under consideration of the Union Government, according to Rear-Admiral (retd) LV Sarat Babu, Chairman and Managing Director.
He told reporters here on Wednesday the negative worth of the company had been reduced through sustained efforts to improve its performance from Rs 1,252.5 crore to Rs 750.51 crore. “Once the restructuring package, which is a book adjustment without any cash flow, is sanctioned, our negative networth will go,” he said.
The sustained efforts by the HSL management and workforce led to achieving an operational profit of Rs 38 crore in the fiscal 2017 after a gap of 35 years compared to Rs 19 crore during the previous year.
Sarat Babu said during 2016-17 HSL achieved an income of Rs 650.08 crore and a value of production of Rs 629.04 crore. The value of production had been the highest since inception of the company 76 years ago. The profit after tax was Rs.53.77 crore. This was a major achievement after several challenging years.
The CMD said the financial results were placed before the annual general meeting of the company held here recently. The company received Raksha Mantri’s award for excellence in innovation for shafting work, development of new welding techniques and rudder carrier bearing modification of a warship. HSL also bagged two excellence awards from Society for Defence Technology (SODET) for technology development and innovation.
Order book : The present order book value of the shipyard is Rs 320 crore due to which the company is functioning at 48 per cent of its installed capacity.
He said the management was trying to persuade the Ministry of Defence to nominate HSL for construction of three cadet training ships, nine 25 tonne bollard pull tugs for the Navy and eight inshore patrol vessels for Indian Coast Guard.
The HSL has also urged the MoD to assign major refit and life certification (MRLC) of third EKM submarine keeping in view its proven record in retrofitting of submarines.
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