Goa Shipyard Limited (GSL) operates as a public sector undertaking under the Ministry of Defence, India. Its business model revolves around three core areas: ship construction, ship repairs, and general engineering services. Here's an overview of each aspect:

1. Ship Construction:

   • Primary Revenue Driver: Ship construction is the cornerstone of GSL's business, contributing approximately 91% of its turnover. The company designs and builds various vessels for the Indian Navy, Indian Coast Guard, and international clients.
     
     
   • Types of Vessels: GSL's portfolio includes Advanced Frigates, Offshore Patrol Vessels (OPVs), Fast Patrol Vessels (FPVs), and Pollution Control Vessels (PCVs). The company is known for its ability to deliver complex, technology-intensive ships that meet the stringent requirements of its defense and commercial clients.
     
     
   • Project Execution: GSL has a strong track record of executing multiple contracts simultaneously, often delivering ahead of schedule. For instance, in FY 2023-24, GSL launched the first Advanced Frigate, INS Triput, and made significant progress on other critical vessels.

2. Ship Repairs:

   • Supplemental Revenue Stream: Although ship repairs contribute a smaller portion of the overall revenue, this segment is crucial for maintaining relationships with the Indian Navy, Coast Guard, and commercial clients. In FY 2023-24, GSL completed refits of five vessels.
     
     
   • Growing Potential: The ship repair business is poised for growth as the Indian Navy and Coast Guard expand their fleets, increasing the demand for repair and maintenance services.

3. General Engineering Services (GES):

   • Diversification: GES is a vital part of GSL's operations, offering specialized engineering solutions related to shipbuilding and naval applications. In FY 2023-24, the GES vertical achieved significant milestones, such as delivering a Damage Control Simulator to the Indian Navy ahead of schedule and supplying specialized boats to the Indian Army.
     
     
   • Innovation and R&D: GSL is heavily invested in research and development, focusing on indigenization and technological advancements. The company is developing Autonomous Surface Vessels and has partnered with start-ups under the Indian government’s iDEX initiative.

4. Global Presence:

   • Expanding Reach: GSL is increasingly focusing on the export market. In FY 2023-24, it began constructing a Floating Dry Dock for the Sri Lanka Navy and secured global orders, including a contract to build a Next Generation Trailing Suction Hopper Dredger for Luxembourg-based Jan De Nul Group. The company is also exploring opportunities in European defense markets through strategic partnerships.

Key Highlights of FY24

1. Goa Shipyard Limited (GSL) celebrated a record-breaking financial year in 2023-2024, with a 100% increase in gross revenue, reaching over ₹2,000 Cr for the first time.

 2.⁠ ⁠The company's EBITDA and Profit After Tax also saw significant growth, rising by 65% and 76% respectively.

 3.⁠ ⁠This success is attributed to GSL's Ship Construction division, which contributed 91% of the total turnover.

 4.⁠ ⁠Key projects for the Indian Navy and Coast Guard, including Advanced Frigates, Offshore Patrol Vessels, and Pollution Control Vessels, are underway.

 5.⁠ ⁠GSL achieved a major milestone by launching the first Advanced Frigate, INS Triput, on 23 July 2024.

 6.⁠ ⁠The company delivered a Damage Control Simulator to the Indian Navy ahead of schedule and supplied specialised boats to the Indian Army. GSL is also expanding its global presence with the construction of a Floating Dry Dock for the Sri Lanka Navy and GSL secured a contract with Jan De Nul Group for constructing one 2,000m3 Next Generation Trailing Suction Hopper Dredger, with an option for an additional dredger. This order marks GSL's entry into the global commercial shipbuilding market for dredgers.

 7.⁠ ⁠Looking forward, GSL maintains a robust order book valued at ₹18,562 Cr, indicating continued growth potential.

 8.⁠ ⁠The company is actively pursuing new projects, including warship construction and collaborations with Indian and international companies for product development and joint production.

 9.⁠ ⁠GSL is committed to investing in emerging technologies, such as Autonomous Surface Vessels, to strengthen its position in the maritime industry.

10.⁠ ⁠The company is dedicated to innovation and is actively involved in the Indian government's iDEX initiative, partnering with start-ups to develop cutting-edge maritime solutions.

FY24 vs Fy23 Performance

GSL's financial performance in FY 2023-24 was marked by significant growth across all key metrics compared to FY 2022-23:

1. Revenue from Operations:

   • FY24: ₹1,752.56 Cr
     
     
   • FY23: ₹869.43 Cr
     
     
   • Growth: The revenue more than doubled, reflecting a 102% year-on-year growth, driven primarily by the ship construction division, which saw its production value increase from ₹509.34 Cr in FY23 to ₹1,487.42 Cr in FY24.

2. Gross Revenue:

   • FY24: ₹2,090.84 Cr
     
     
   • FY23: ₹1,045.80 Cr
     
     
   • Growth: Gross revenue also doubled, showcasing the company's ability to capitalize on increased demand and project execution efficiency.

3. EBITDA:

   • FY24: ₹102 Cr
     
     
   • FY23: ₹90 Cr
     
     
   • Growth: The EBITDA grew by 11%, highlighting improved operational efficiency and cost management, despite challenges such as geopolitical tensions and supply chain disruptions.
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4. Profit After Tax (PAT):

   • FY24: ₹271.32 Cr
     
     
   • FY23: ₹154.54 Cr
     
     
   • Growth: PAT saw a substantial rise of 76%, reflecting GSL's strong financial health and successful project executions.

5. Order Book:

   • As of 31 Mar 2024: ₹18,562 Cr
     
     
   • Implication: A robust order book indicates stable revenue visibility for the coming years, ensuring continued growth potential.

In conclusion, Goa Shipyard Limited's business model, centered on ship construction, repairs, and general engineering services, has proven highly effective, as evidenced by the company's record-breaking financial performance in FY 2023-24. With a strong order book, strategic global partnerships, and continued investment in R&D, GSL is well-positioned for sustained growth in the maritime industry.