Bharti Shipyard outlook steady

Bharti Shipyard outlook steady

Mumbai: Shipbuilder Bharati Shipyard Ltd posted a nearly steady profit growth for the quarter ended December and expects outlook to remain stable over the next few quarters, a top official told reporters on Thursday.

The company posted a net profit of around Rs32.9 crore compared with nearly Rs31.8 crore a year ago, while net sales grew nearly one-third to Rs336 crore.

“We expect to maintain this growth rate. We have an order visibility for the next two-three years," managing director P.C. Kapoor told a news conference, adding that he is bidding for several defence orders.

Bharati Shipyard has an order book of Rs4,987 crore as on 31 December, he said.

“There is still some slowdown in cargo vessels," said Kapoor, a naval architect from the Indian Institute of Technology, Kharagpur. “People are still waiting to see what the demand-supply situation is. They are all waiting for the recession to get over."

The firm did not receive any fresh orders in the December quarter, he added.

Ahead of the announcement, shares in Bharati Shipyard ended down 2.3% at Rs271 in a flat Mumbai market.

Bharati Shipyard, which holds a 45.88% stake in Great Offshore Ltd, is not in talks with rival ABG Shipyard Ltd for a further stake buy, Kapoor said.

ABG holds more than 15% in Great Offshore, which was recently embroiled in a six-month-long takeover battle, with the two shipbuilders slugging it out to take a majority stake in the former.

ABG exited the race after rival Bharati raised the open offer price to Rs590 a share compared with ABG’s Rs520.