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ABG Shipyard expects FY12 sales to grow about 30%

02 Jun 2011 Evaluate

ABG Shipyard expects its FY12 sales to grow about 30% led by a buoyant offshore segment and is also planning to bring down debt by around Rs 400 crore. The company expects growth momentum to continue and is seeing the momentum in the offshore side.

The company's net sales grew 15% to Rs 2,077 crore in FY11. Its current order book stands at Rs 14,500 crore and hopes to add around Rs 2,000 crore of orders this fiscal. There are many orders available for the lower category anchor handlers, but the company is trying to see if it can jump to the next level. It is targeting the higher end vessel (orders) which have higher pricing.

This year, ABG expects to deliver over 20 vessels, including five bulk carriers and several others to the offshore suppliers. In 2010-11, the company has delivered 16 vessels, the highest by any shipyard in India.

Besides, ABG Shipyard has been awarded industrial licenses for Design & Construction of Defence Ships from the Ministry of Commerce & Industry. Upon receiving the award the company is now qualified for building Naval Warships and Naval Support Ships etc., also Submarines and Underwater Vessels, Fast attack Crafts and Weapons and Equipment including their Mounts, turrets, launchers, etc., along with associated systems, sub-systems and all types of assemblies for Navy, Army and the Air Force.

ABG Shipyard is engaged in the business of carrying shipbuilding and ship repair business. The company has emerged as the largest private sector shipbuilding yard in India with satisfied customer base all around the world.

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