Kolkata: FY 19 is going to be a little better than the last year but 2021 onwards GRSE will be on the upward growth trajectory registering huge growth, said GRSE's CMD RAdm Vipin Kumar Saxena (Retd.) when asked about the final quarter results that are supposed to come by May end. Adm. Saxena said that it is a historic feat for the shipbuilders to be the only defence PSU to have delivered 100 Warships. He was speaking to a private news channel. Recently GRSE has been awarded Rs 6,311 crore contract to build eight anti-submarine warfare shallow watercraft for the Indian Navy. With this order, the company's order book has swelled up to Rs. 28,000 Cr.
RAdm Saxena said after winning over the rest of the bidders that included both public and private shipbuilders, now the company's focus is going to be fully on execution at a fast rate. Building period of these ASWSWCs ships has also been kept very competitive in order to win over the competition. The first of the anti-submarine vessels will be delivered within 42 months from the date of signing the contract. Then it will be one ship per year. The entire manufacturing and design are going to be done by GRSE's own manufacturing and designing team.
"I must say that shipbuilding follows a particular cycle and somewhere in the middle of the shipbuilding process, you book the maximum revenue. so, therefore, I expect that other projects are going to give us better revenue, like the Project 17A-class of 3 missile stealth missile frigates, because that's is a very huge contract. The cost of the project is above 19000 cr" said RAdm Saxena when asked about profit booking from the current order book. The Project 17A-class frigate is a follow-on of the Project 17 Shivalik-class frigate for the Indian Navy. A total of seven ships will be built by GRSE and MDSL.
"In warship building what happens is that you book the maximum profit in the mid part of the ship construction. I am pretty sure that GRSE would be seeing revenues going up at least 3 times from where they are now in coming 3 to 4 years time,"
The construction of the first ship started in 2017 and the first ship is expected to deliver by 2023. "The project is progressing quite well and we expect that out of this construction, the first ship is already completed 10% production and production of the second ship has already started, so I expect that from 2021 onwards the shipyard u will see a huge jump in terms of its revenue topline as well as the bottom line," he added.
RAdm Saxena said FY 19 is going to be only a little better than the previous one as the DPSU is in the delivery phase of 7 ships that is again 3 projects. But once the delivery of major projects begins taking place, profit booking will grow accordingly". He further added "In warship building what happens is that you book the maximum profit in the mid part of the ship construction. I am pretty sure that GRSE would be seeing revenues going up at least 3 times from where they are now in coming 3 to 4 years time,".