The Board of Directors of the Company at its meeting held on May 28, 2011, in-principle, agreed to convert the wet basin into the 2nd dry dock to enhance Its capabilities to build/ repair warships for Indian Navy and export market. Towards this objective the Company would, at an appropriate time, raise necessary long term debt. The Board has noted that the Company is poised to emerge as an integrated defence Company in addition to its other activities.

Pipavav Shipyard Ltd. will soon be officially changing its name to Pipavav Defence and Offshore Engineering Company Ltd.

The company's total income grew 32.5 percent from Rs 6,968.8 million in FY 2010 to Rs 9,232.9 million in FY 2011. It's EBITDA grew 254.6 percent from Rs 608.8 million in FY 2010 to Rs 2,159.0 million in FY 2011.

"Our financial performance has improved significantly during the year as we see overall growth in top-line and bottom-line numbers. Operating margins and net profits have seen substantial growth during the fiscal year and turned to positive this year. With the signing of contract for Naval Gunboats (NoPV) with Ministry of Defence, the Company has entered into warship building. Correspondingly, our order book is likely to grow on the back of expanding demand in the defence segment," said Nikhil Gandhi, Chairman, Pipavav Shipyard Limited.

The Company has posted a net profit of Rs 397.715 million for the year ended March 31, 2011 as compared to net loss of Rs (488.205) million for the year ended March 31, 2010. Total Income has increased from Rs 6968.892 million for the year ended March 31, 2010 to Rs 9232.959 million for the year ended March 31, 2011.

In the Offshore segment, the company signed contracts for 12 OSV (US$110 mn) from ONGC Dedicated facilities for fabrication / construction of offshore platforms, rigs, jackets and vessels for the offshore sector.

In the Ship Building, Repair & Refit segment, the company bagged orders from international ship-owners for 21 Panamax bulk carriers of 74,500 DWT each Capacity to repair VLCCs and OSVs, as well as naval, and other specialty vessels such as LNG carriers Ship Repair activity commenced.

"Having signed an MoU with Northrop Grumman, PSL will be able to utilize Northrop’s technical expertise to indigenously produce military hardware. This coupled with the recently signed agreement with Babcock Group to produce next generation aircraft carrier, positions the Company as a leader in naval defence production. The Company is now poised to emerge as an integrated defence company," Nikhil Gandhi said.

"Throughout the year, we have continued to improve our performance and are set to deliver growth as we capture the opportunities that are available in the segments in which we operate. We continue to pursue the strategies and partnerships that will add value to the Company and our stakeholders going forward," he said.

Pipavav has the Largest dry dock in India, 662 meters long and 65 meters wide and capable of accommodating ships of up to 400,000 DWT.

The Company has an order book to the tune of approx USD 1.5 billion ( Exports - USD 800 million, Defence - USD 650 million, Offshore - USD 110 million).