Indian news outlets have reported that Indian defence shipbuilder Hindustan Shipyard (HSL) has overcome supply chain challenges, liabilities and unresolved legacy problems, enabling its net worth to turn positive for the first time in 40 years.
The shipyard was also able to reduce its debt by INR1.253 billion (US$15 million).
In FY 2024-25, HSL achieved interim gross revenue of INR15.86 billion (US$190 million) and net profit of INR29.5 billion (US$340 million), up 36 per cent year-on-year, achieving positive net assets for the first time in 40 years.
In February 2010, HSL was taken over by the Indian Ministry of Defence (MOD) due to financial difficulties. From 2010 to the end of 2011, the MOD allocated INR45.268 billion (US$530 million) to help modernise HSL.
However, due to a lack of orders as well as operational challenges, the shipyard’s net assets remained at negative INR6.28 billion (negative US$73 million) and decreased to negative INR10.23 billion (negative US$120 million) by FY 2014-15.
Over the past few years, the situation at HSL has improved, and profits have increased year by year, supported by orders for ships and other projects. In FY 2023-24, HSL’s turnover reached a record INR14.13 billion (US$170 million).
Baird Maritime
India's Hindustan Shipyard reports positive net worth for first time in 40 years – Baird Maritime
