Bharati Shipyard has reported a marginal 1.4% decline in net profit for the Q2 of the current fiscal at INR 32.68 crore against INR 33.16 crore in the year ago period. The company attributed the decline to lower subsidy on shipbuilding received from the Government of India and higher interest costs.

Under the national shipbuilding policy, the company received a Government subsidy of INR 16.85 crore during the quarter against INR 21.6 crore received during the corresponding quarter of last fiscal. Its interest outgo was higher at INR 23.61 crore against INR 10.9 crore in the year ago quarter. It's net sales during the quarter increased by about 47.9% to INR 316.32 crore.

Mr PC Kapoor MD of Bharati Shipyard said that the company’s order book stood at INR 5,065 crore. We are expecting a significant order flow from the defense sector in the next two years.”

Mr Kapoor said that “We will be investing another INR 400 crore in our Mangalore facility in two phases. Both the facilities will start production from 2011.”

Bharati Shipyard has lined up a capital expenditure program of INR 600 crore to ramp up the capacity of its upcoming Dabhol facility in the next three years.

(Sourced from Business Line)