Pipavav Shipyard Limited = FY 11 vs FY 10 RESULTS = IMPROVING FAST

Pipavav Shipyard Limited

NSE Symbol        PIPAVAVYD

PIPAVAV SHIPYARD  has reported improved results for FY 2011.

Net Sales in FY 11 has been Rs.859.93 cr – an increase of 36.63% over FY 10.

Total Expenditure is Rs.750.06 cr in FY 11 – an increase of 12.22% over FY 10.

Profit from Operations has increased to Rs.117.56 cr in FY 11 – compared to a loss of  Rs.38.99 cr in FY 10.

Other Income in FY 11 is Rs.55.73 cr – compared to Rs.67.55 cr in FY 10.

Interest     expenditure has gone up to Rs.119.00 cr  in FY 11 – compared to Rs.73 cr in FY 10.

Tax Expense in FY 11 is Rs.10.59 cr – compared to Rs.1.63 cr in FY 10.

Net Profit  in FY 11 comes to Rs.43.69 cr compared to a loss of Rs.46.07 cr in FY 10.

The total FY 11 Basic EPS is Rs.0.66 compared to Rs(-)0.77 in FY 10.   The C-Basic EPS has been Rs.0.04 for Q3; Rs.(-).03 in Q2 and Rs(-)0.15 in Q1 FY 11. Thus, PIPAVAV  has registered its first annual positive consolidated EPS in FY 11.

RESULTS TABLE :

PIPAVAV SHIPYARD	FY 11 CS	FY10CS
Net Sales	85993.08	62938.26
Other Operating Income	768.29	-
Increase in SIT / WIP	2235.06	11294.3
Raw Materials	28283.2	16931.91
Traded goods	25758.8	9477.15
Employees Cost	2773.33	2197.76
Depreciation	5198.09	3773.62
Other Expenditure	10757.12	23162.38
Total Expenditure	75005.6	66837.12
Profit from Operations	11755.77	-3898.86
Other Income	5573.31	6754.79
Profit before Int & EI	17329.08	2855.93
Interest	11900.7	7300.02
Profit after Int BB EI	5428.38	-4444.09
Profit before tax	5428.38	-4444.09
Tax Expense	1059.25	162.53
Net Profit	4369.13	-4606.62
Face Value (in Rs.)	10	10
Paid-up Equity	66579.84	66579.84
Reserves	102501.56	103650.01
Basic EPS	0.66	-0.77
Public Shareholding (%)	55	60.44

ANNOUNCEMENTS TO NSE

24-03-2011        Pipavav Shipyard Limited received License to build Warships for Indian Navy. The Company has now informed that it has also received clearance from Foreign Investment Promotion Board (FIPB), Ministry of Finance, Government of India which permits foreign direct equity investment.The Company has obtained all statutory clearances required for warship building for defence sector. The clearance will help the Company to bid for all future warship projects like frigates, destroyers, aircraft carriers, LPDs, submarine, corvettes etc. of Indian Navy.      -

17-02-2011        Pipavav Shipyard Limited "MoU signed with Northrop Grumman Overseas Service Corporation,Delaware,USA".

23-12-2010        "Pipavav Shipyard Limited (the Company) has signed a Memorandum of Understanding (MOU) with SAAB Dynamics AB (SAAB), a part of Swedish multinational giant - Wallenberg Group".

09-12-2010        "Pipavav Shipyard Limited (the Company) has signed Protocol with M/s Rosoboron Export which is a Russian Government arm for Defence co-operation with foreign Governments.

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Pipavav Shipyard Limited = FIRST QTR RESULTS = Q1 FY 2011 = HUGE ORDER BOOK = FUTURE APPEARS SECURE

Pipavav Shipyard Limited

NSE Symbol            PIPAVAVYD

Q1 FY 11 results

ANALYSIS

Pipavav ship yard limited has produced better results in Q/E June 2010 compared to the previous quarter of Q/E March 2010.

As can be seen from the figures below, the company has improved its performance on all parameters, though it still continues to incur LOSSES, which have come down in the quarter.

As per a news in June 2010, Pipavav Shipyard, the country’s largest ship-building facility in the private sector, has bagged a Rs 2,600-crore contract to build offshore patrol vessels for the Indian Navy. The shipyard located in Gujarat will be constructing about five such vessels. With this,the company’s order books have swelled to over Rs 7,000 crore.

As per various news in July’10 - SKIL Infrastructure Ltd has acquired 5.25% more stake in Pipavav Shipyard Ltd to raise its stake to 38.45%.In a filing to the Bombay Stock Exchange, the company said it acquired 35 million equity shares through open offer. The company earlier held 221 million shares or 33.2% stake in Pipavav.

Pipavav Shipyard is in the business of building large dry-bulk carriers, popularly known as Panamax , and offshore vessels for oil exploration companies . It also manufactures ships for the Indian Navy. At present it is constructing 21 Panamax vessels for export and 12 offshore support vessels for ONGC. It is likely to consider a name change to reflect its actual activities.

Thus, the future of Pipavav appears to be secure. Current Market price is around Rs,116.

RESULTS IN FIGURES :PIPAVAVSHIPYARD	Jun-10	Dec-09
Net Sales	17602.26	16759.22
SIT & WIP	-650.2	1405.64
Raw Materials	6918.29	15078.02
Traded Goods	1642.08	-
Employees Cost	628.7	544.19
Depreciation	1176.8	891.75
Total Exp Excl.OE	9715.67	17919.6
Other Expenditure	7825.56	2245.99
Total Expenditure	17541.23	20165.59
Profit from Operations	61.03	-3406.37
Other Income	1252.88	1094.65
Profit before I & EI	1313.91	-2311.72
Interest6	2292.89	1670.33
Profit A I BB EI	-978.98	-3982.05
P B T	-978.98	-3982.05
P A T	-978.98	-3982.05
Net Loss	-978.98	-3982.05
Dividend (%)	-	-
Face Value.Rs	10	10
Paid Up Equity	66579.84	66579.84
Reserves	-	-
Basic EPS	-0.15	-0.63
Public Shareholding (%)	55.18	60.44

ANNOUNCEMENTS

TO THE EXCHANGE

3-07-2010          JM Financial Consultants Pvt Limited has submitted to the Exchange a copy of the post offer public announcement published on July 10, 2010 with respect to Open offer for acquisition of shares from shareholders of Pipavav Shipyard Limited (the "Target Company") by SKIL Infrastructure Limited ("SKIL") and SKIL Shipyard Holdings Pvt Limited (SSHPL and together with SKIL "Acquirers ") under SEBI (SAST) Regulations. 

09-07-2010        Pipavav Shipyard Limited has informed the Exchange that "One of our Customers viz. Golden Ocean Group Limited had referred the shipbuilding contracts to arbitration,and that both parties were exploring the option of resolving the issue bilaterally. We are pleased to inform you that negotiations with the said Golden Ocean Group Limited and its two associate/group companies ('GOGL') have been concluded successfully. Please note that GOGL has withdrawn arbitration proceedings initiated against the Company referred to in our letter dated December 18, 2009".

02-07-2010        Pipavav Shipyard Limited has informed the Exchange that as part of strategic corporate restructuring Mr. Jai Prakash Rai, the ex-Chief Executive Officer of Pipavav Shipyard Limited ('the Company') has moved as Group Chief Executive Officer of SKIL Infrastructure Limited, the promoters of the Company w.e.f. July 1, 2010. Further, Cmde (Retd) M. Jitendran, VSM has been appointed as the Chief Executive Officer of the Company w.e.f. July 1, 2010. Prior to joining the Company, Cmde (Retd) M. Jitendran was the Chairman & Managing Director of Cochin Shipyard Limited for around eight years. Before that, Cmde (Retd) M. Jitendran had a distinguished career with Indian Navy. The Management believes that the Company would immensely benefit from the leadership qualities, rich experience and expertise, as a shipbuilder, of Cmde (Retd) M. Jitendran. -

03-06-2010        Pipavav Shipyard Limited has informed the Exchange that the following business, as set out in the Notice, was transacted at the Extraordinary General Meeting held on May 05, 2010, by the Members of the Company: (1) Increase in the borrowing powers of the Company to Rs.2500 Crores; (2) Authority to the Board of Directors('Board')/a duly authorised Committee thereof ('Committee') to issue of 2,54,00,000, 10% Fully, Compulsorily and Mandatorily Convertible Unsecured Debentures to the proposed allottees mentioned in the Notice, with liberty to the Board/Committee to vary, modify or alter any of the terms and conditions of such issue as deemed fit; and (3) Amendment of the Articles of Association of the Company by inserting suitable Articles to facilitate the above-mentioned Issue of Debentures.         -

29-05-2010        Pipavav Shipyard Limited has informed the Exchange that the Board at its meeting held on May 28, 2010, (1) The Board ratified and approved issue and allotment of 25,400,000 (Twenty Five Million Four hundred thousand) 10% Fully, Compulsory and Mandatorily Convertible Unsecured Debentures of Rs. 70/- (Rupees Seventy only) each to Valiant Mauritius Partners FDI Limited, an entity of Valiant Mauritius Group by the Securities Allotment and Transfer Committee of the Board in accordance with other terms and conditions approved by the shareholders at the Extra-Ordinary General Meeting held on May 5, 2010. (2) Noted that ISO 9001:2008, ISO 14001:2004 and OHSAS 18001:2007 certificates have been awarded to the Company.

13-04-2010        News Verification : The media had reports that Pipavav Shipyard Limited has cancelled 2 ship orders worth $ 75 Mn. The Exchange, in order to verify the accuracy or otherwise of the information reported in the media and to inform the market place so that the interest of the investors is safeguarded, had written to the officials of the company. Pipavav Shipyard Limited has vide its letter inter-alia stated," The reports in the media that the Company has cancelled 2 ship orders worth $75 millions is false and baseless."

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