Hindustan Shipyard Limited retains positive net worth in FY 2024-25

When we talk about the Visakhapatnam of today and what led to its growth, then Hindustan Shipyard Limited (HSL), India’s second-largest shipyard, has to be involved in conversation. Let’s dive into the remarkable story of Hindustan Shipyard Limited.

A Legacy of Excellence

Jala Usha launch in 1948 (Photo Credit: HINDU PHOTO ARCHIVES)

HSL’s journey began during the British era when Visakhapatnam was identified as a strategic location for shipbuilding. The foundation stone was laid on June 21, 1941, and the yard was originally named Scindia Shipyard. Post-independence, it launched its first ship, Jal Usha, in 1948.

In 1961, the shipyard was nationalised and renamed Hindustan Shipyard Limited. In 2010, it was brought under the administrative control of the Ministry of Defence, reflecting its growing importance in naval defence projects, especially submarine refits and support to India’s nuclear submarine program.

Recent Comeback:

According to the report by the Economic Times, after four decades of financial challenges, HSL has recently demonstrated a remarkable turnaround:

Total income: Rs 1,586 crore in FY 2024-25.

Order Expansion: The company’s order book increased from Rs 2,000 crore to over Rs 20,000 crore, a tenfold increase in just three years.

Turnover Growth: Turnover climbed from Rs 478 crore in FY 2020-21 to Rs 1,413 crore in FY 2023-24.

Profit Before Tax (PBT): PBT reached Rs 295 crore, a 36% increase from the previous year.

Net Worth: The company’s net worth turned positive after 40 years, positioning it for Miniratna status.

Despite being overshadowed by larger counterparts in Vizag’s development contribution, HSL has consistently played a crucial role in the industrial and defence strength of Visakhapatnam.

Contributions and Future Outlook

HSL has built and refurbished over 2000 vessels, including bulk carriers, offshore patrol vessels, survey ships, and more. The shipbuilding industry in Vizag has provided training and careers for many locals.

From a wartime industrial vision to a strategic defence asset, Hindustan Shipyard Limited has seen a remarkable journey. With its financials now in the green and a robust order book, HSL is no longer known for its glittery past but would be known as a bright shining “Ratna” in Visakhapatnam’s future.