ABG Shipyard Q3 Standalone Net Up 61% On Increased Sales

Monday, ABG Shipyard Ltd announced financial results for the third quarter ended December 31, 2007, reporting higher standalone net on increased sales.

The company disclosed that the increase in profit during the quarter attributed to enhanced productivity, faster delivery and repeat order from existing customers.

The Surat, Gujarat-based company reported third quarter standalone net profit of Rs. 47.12 crores, compared to Rs. 29.30 crores in the third quarter of 2006, registering a growth of 61%.

The company's quarterly net sales rose 55% to Rs. 274.96 crores from Rs. 177.58 crores in the year-ago quarter. Other income during the quarter was Rs. 1.98 crores, compared to Rs. 0.90 crores for the same period last year.

The earnings before interest, tax and depreciation for the quarter surged 55% to Rs. 81.58 crores from Rs. 52.58 crores in the corresponding quarter last year. During the quarter, the net profit margin was 17.14%, up 4% from 16.50% in the previous year quarter. Quarterly earnings per share were Rs. 9.25, up 61% from Rs. 5.74 in the year-ago quarter.

ABG Shipyard recently bagged a repeat order from Lamnalco Ltd, Cyprus, for 2 vessels amounting to $34.20 million. The vessels will be a 53 M LOA 80T B P Azimuthing Production Support Vessel. The company has till date constructed and delivered 7 vessels to Lamnalco and further 5 vessels are under construction.

The company has a total order book of Rs. 8,700 crores as at the end of December 31, 2007, of this it has already recognized Rs. 1,400 crores. The executable order book is around Rs. 7,300 crores, which is to be executed over the next 2.5-3 years.

ABG Shipyard plans to raise $200 million via QIP by first week of February to expand its Surat shipyard at Rs. 400 crores and Vipul shipyards at a cost of Rs. 800 crores. There will be an equity dilution of 7% to 8%. For the expansion, the company plans to utilize $200 million being generated from the QIP and the balance through internal accruals.

About ABG Shipyard

ABG Shipyard Ltd, the flagship company of ABG group, is engaged in shipbuilding and ship repair business in private sector. The company is setting up a new shipyard with manufacturing facilities including 2 nos. 400 metres long new building dry docks allowing the company to build all kinds of vessels up to 12,000 DWT.

Source:RamblerNews