CSL order book position comfortable, net leaps to Rs 50 cr

Kochi, April 27 | Updated: Apr 28 2007, 08:49am hrs
It has been quiet a turnaround for the public sector giant, Cochin Shipyard Ltd. (CSL), which was in the red for such a long time. The shipyard now boasts of a brimming order book with contracts for 22 ships that includes 19 platform vessels and 3 bulk carriers, worth Rs 2,000 crore. The shipyard is also constructing a huge aircraft carrier for the Indian Navy.

The company has achieved an all-time high shipbuilding of 179000 DWT for FY 06-07, surpassing the previous best of 110206 DWT achieved in the year 2005-06. CSL has more than doubled its net profit for the FY 06-07 to Rs 50 crore (unaudited) from Rs 18 crore in 05-06. The turnover has also doubled for the corresponding period.

The reputation of the company in the international maritime industry is at high point with continuous orders from prestigious Bahamas based companies like Clipper Group and Deep Sea Supply, Norway, V Kala, company secretary told FE.

In the recent past, CSL has established an additional revenue stream by repairs of vessels and offshore structures of oil exploration industry. The yard has completed two offshore projects for Oil and Natural Gas Corporation of India (ONGC).

CSL has also received an in-principle approval from the ministry of the shipping and Planning Commission for a small ship division, she said. This was necessitated with the construction of the aircraft carrier, which takes bulk of the dockyard.

"The additional space and facilities will help the company service its increasing overseas clients simultaneously with the construction of the aircraft carrier," she said.

CSL is also planning to set up an industrial area on its premises for manufacturing minor components of shipbuilding. The mini industrial estate is aimed at increasing indigenous input in all ongoing and future projects.