HSL clocks all-time high Rs 1,600-cr turnover in FY24
This is a more than three times increase in revenue compared to FY21
Visakhapatnam: A multi-pronged approach to adhere to delivery schedule, bring about significant improvement on production front and to boost morale of the workforce by focusing on welfare measures have yielded positive results for Hindustan Shipyard Ltd (HSL) enabling it to achieve the highest turnover of nearly Rs 1,600 crore since inception during 2023-24.
HSL has created a record by achieving the highest-ever (provisional) revenue of Rs 1597 crore in the just-concluded financial year. It is pertinent to note that in FY24, HSL has registered more than three times increase in revenue over FY21 when the total revenue was just Rs 478 crore. At that time, the company had posted a loss of Rs 14 crore.
The performance during FY24 has also showcased an irreversible turnaround from a loss-making company to a vibrant defence public sector undertaking (DPSU) contributing significantly to Atma Nirbhar Bharat.
The glorious journey of India's shipbuilding yard began during the pre-Independence era. The premier shipbuilding yard was set up in Visakhapatnam in 1941 by great industrialist and visionary Seth Walchand Hirachand under the brand name of Scindia Steam Navigation Co Ltd.
After it incurred recurring losses due to a variety of factors, attempts for achieving a turnaround and reducing its legacy liabilities were initiated when the company was brought under the Ministry of Defence from the Ministry of Shipping in 2010. It was nationalised in 1961.
The company received a shot in the arm when the Ministry of Defence entered into an agreement with HSL for an order worth Rs 19,000 crore last year to acquire five fleet support ships, for one of its kind, under the Make in India Mission last year.
The ships will be in the category of 44,000 tonnes aimed at achieving self-reliance with indigenous designs and manufacturing at HSL. The yard has already achieved the specialisation in retrofitting submarines.
A company official said HSL has in the past three years has taken steps that have strengthened the defence PSU's overall performance which includes infrastructure upgradation, improving corporate governance and increased focus on ship repairs and refit.
For example, on March 30, 2024, HSL towards boosting its capacity for ongoing fleet support ships and future projects like Landing Platform Dock (LPD) signed a major infrastructure upgradation contract with L&T Geostructure with a project completion timeline of 20 months.
In order to augmenting the capacity of the shipyard, HSL has stressed significantly on the PPP projects, which is another important reason behind the record revenue generation.
