Hindustan Shipyard Limited (HSL) has reported a positive net worth for the first time in 40 years. The turnaround comes after overcoming legacy issues, financial liabilities, and supply chain challenges.
Strong Growth in FY 2024-25
In 2024-25, HSL recorded a provisional total income of ₹1,586 crore and a profit before tax of ₹295 crore, marking a 36% year-on-year growth. This financial performance has positioned the shipyard for Miniratna status.
Strategic Role in Defence Sector
Located in Visakhapatnam, HSL plays a key role in India’s defence manufacturing. It is currently building fleet support ships for the Indian Navy and refitting submarines. The shipyard’s proximity to the Ship Building Centre and Eastern Naval Command adds to its strategic importance.
Takeover and Initial Struggles
The defence ministry took over HSL in 2010, when it was facing severe financial issues. A government grant of ₹452.68 crore was given in 2010-11 to aid modernisation. Despite this, the shipyard’s net worth remained negative, worsening to ₹1,023 crore by 2014-15 due to low order volumes and operational challenges.
Post-Covid Turnaround
HSL was impacted by the Covid-19 pandemic, but its recovery began over the past four years. A significant naval order and other contracts helped drive profits.
Record Turnover and Cost Reforms
In 2023-24, HSL posted a record turnover of ₹1,413 crore, nearly triple its ₹478 crore turnover in 2020-21. The shipyard adopted measures such as cost-cutting, productivity improvements, and innovation. It also resolved legacy issues and reduced contingent liabilities worth ₹1,253 crore.
