According to the provisional results announced on Thursday, the net loss during the year was Rs 34.49 crore as compared to Rs 62.19 crore loss in 1997-98.

The turnover of the ship building division during 1998-99 was Rs 96 crore compared to Rs 56.75 crore in the previous year, HSL's chairman and managing director rear admiral RM Bhatia told a press conference here.

The operating loss of Rs 52.15 crore, accounted by the division at the end of 1997-98, was reduced to Rs 28.91 crore during last year, he said.

In ship repair division, the turnover has increased to Rs 73.24 crore from Rs 46.80 crore in 1997-98 and the unit recorded a provisional profit of Rs 23.35 crore.

The capacity utilisation of HSL was 38 per cent in 1998-99 and Bhatia expressed hope that it could be increased this year with new ordersfrom Andaman and Nicobar administration and Mormugao Port Trust.

The Andaman and Nicobar administration's order was for 10 100-seater passenger vessels with a total value of Rs 71 crore while that of Mormugoa Port Trust was for two 45 tonne bollard pull tugs togather costing Rs 31 crore.

He said HSL expected to obtain order for a 700-seater vessel for union territory of Lakshadweep.

Last year, HSL had bagged the high value repair work of a floating dock, FDN-1, for the Indian Navy despite international competition, Bhatia said.

During the year, HSL, for the first time, also repaired an oil tanker of Shiping Corporation of India (SCI) and another of the Indian Navy, he said.

He said the dock trial for a 1,200 passenger-cum-cargo vessel, built for Andaman and Nicobar administration, was conducted successfully and it would be put to sea trials in August next.

MV Tamilnadu, a 42,750 vessel for SCI, was floated out of the building dock and HSL expected to deliver it in the current financial year,Bhatia said and added that it also expected to deliver two 50 tonne bollard pull tugs to the Visakhapatnam Port Trust before November.

He said due to applicability of minimum alternate tax on national profits, HSL could not implement the capital restructuring though the approval was given in August 1997.

He said the Shipyard was planning to introduce ISO-9001 quality systems in the ship repair division.