Mixed results for India's private shipyards

India's major private-sector naval shipbuilders posted mixed financial performances during the second quarter of 2012 as they continue to feel the effects of a range of domestic economic pressures.

In results posted on 14 August, Pipavav Defence and Offshore Engineering saw profits fall, Bharati Shipyard posted a significant loss and ABG Shipyard registered a modest incline. Only the widely diversified Larsen & Toubro (L&T) recorded strong growth, thanks to its investment portfolio.

In statements on the Bombay Stock Exchange (BSE), Pipavav said turnover increased by 60 per cent to INR5.8 billion (USD104 million) but net earnings fell by about the same amount to INR20 million, while Bharati posted a fall in sales of 61 per cent to INR1.7 billion and a net loss of INR810 million.

ABG posted a turnover of INR6.4 billion – an increase of 26 per cent - and a 2 per cent growth in net earnings to INR410 million. L&T – which includes engineering, construction and transport among its key sectors – saw sales grow by 26 per cent to INR119 billion and earnings climb by 15 per cent to INR7.4 billion.