Visakhapatnam: The Hindustan Shipyard Limited here is all set to wipe out losses with its plea for financial restructuring under consideration of the Central government.
Talking to reporters here on Wednesday, HSL Chairman-cum-Managing Director Rear-Admiral (retd) LV Sarat Babu said that 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, HSL’s negative net worth would go, he stated.
Dedicated 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.
Rear Admiral Sarat Babu said that during 2016-17, the shipyard 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 which was a significant achievement after several challenging years.
The financial results were placed before the annual general meeting of the company held here recently and 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 warshi, he revealed. HSL also bagged two excellence awards from Society for Defence Technology (SODET) for technology development and innovation.
The present order book value of HSL is Rs 320 crore which saw the company is functioning at 48 per cent of its installed capacity.
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, he said.
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.