HSL records four-fold increase in income in five years - CMD attributes turnaround to team spirit, support of stakeholders

After weathering several challenges, Hindustan Shipyard Limited (HSL), a premier Ministry of Defence enterprise, has evolved into a dynamic, performance-driven shipyard, with a sharp focus on delivery, quality, and customer satisfaction by demonstrating a strong turnaround.

Following sustained efforts by CMD Cmde (retd) Hemant Khatri and an able team of administrators and workforce, HSL set up in 1941, today stands as a transformed entity-both in terms of financial performance and operational capability. From a legacy PSU, The networth in the last five years is a testament to the rapid transformation, commitment and growth the shipyard has taken in its march towards a positive net worth company.

"I now present our financial performance over the last five years, which reflects a strong growth trajectory and turnaround of our company. Our Total Income has increased steadily from ₹403 crore in FY 2020-21 to ₹1,783 crore in FY 2024-25-a more than four-fold increase over five years. On the right, we see the Profit Before Tax graph. After a loss of ₹85 crore in FY 2020-21, the shipyard turned around with a profit of ₹51 crore in FY 2021-22, and continued to improve with a profit of ₹284 crore in FY 2024-25," the CMD told a media briefing here on Tuesday. He attributed the turnaround success to the outstanding team spirit by the workforce and excellent support from the stakeholders and the government.

HSL is consistently making efforts to boost indigenization in its ship construction projects under Make in India policy. It achieved 80% indigenous content on recently delivered INS Nistar and & 72% indigenous content in Floating Dock. The yard has indigenized 39 items worth Rs. 220 crore which were being imported. The company has achieved a substantial increase in procurement through local MSMEs and ancillary industries thereby promoting growth.

HSL generates employment in and around Visakhapatnam. The shipyard provides direct employment to around 1100 personnel and employs around 3100 contract manpower through contractors. The footfall in the yard as on July 1 is close to 4200.

MoU has been signed between HSL & Department of Public Enterprises under MoD. Every year the targets are freezed on commencement of new FY and based on performance matrix each PSU is graded based on the achieved score. HSLS MoU performance over the last five years can be seen following an upward trajectory which shows shipyards growth across all facets of its business units. With the recent delivery of INS Nistar the capacity of HSL is being augmented from CAT B to CAT A.

On operational excellence, the CMD said this slide is a pointer to the consistent pursuit of operational excellence. "Over the past five years, we have delivered multiple complex projects across the domains of shipbuilding, ship repair, and submarine refits without Liquidated Damages (LD) - a rare distinction in the industry."

HSL has a modern and dedicated design department of about 70 officers (55-permanent roles + 15-FTE) facilitating development of designs for a wide variety of vessels. The software(s) being used includes - Aveva marine, Tribon M3, Auto cad, ZW CAD, NAVIS Work Manager. HSL has In-house designs developed for both defence & commercial sectors. The CMD said "we have collaborations in place with both Indian & global design houses for cutting edge technologies."