Exceptional gain powers Hindustan Motors to Q1 profit

8166 Investors following Hind Motors. Share this News with them.

0

Like this story, share it with millions of investors on M3

Exceptional gain powers Hindustan Motors to Q1 profit

Hindustan Motors, maker of the iconic Ambassador car, reported a net profit of Rs 17.20 crore in the first quarter, compared with a Rs 19.73 crore loss a year ago, boosted by one-time gain from profit on sale of immovable properties and investments.

Post your opinion here

 

0

Tweet

Share on Tumblr

ALSO READ News and Notices about Hind Motors See interviews with Hind Motors Management See what other Experts & Brokerages are saying about Hind Motors See previous Results of Hind Motors Hind Motors BSE | NSE 31/05/12 Are Mutual Funds betting on Hind Motors?

Moneycontrol Bureau

Hindustan Motors , maker of the iconic Ambassador car, reported a net profit of Rs 17.20 crore in the first quarter, compared with a Rs 19.73 crore loss a year ago, boosted by one-time gain from profit on sale of immovable properties and investments.

However, barring the exceptional gain of Rs 47.63 crore, the loss widened over 21% year-on-year to Rs 25.16 crore, as sales continued to decline. In the April-June quarter Hindustan Motors' net sales slumped 19% to Rs 121.22 crore.

Hindustan Motors has struggled to keep pace with growing competition in Indian automobile market over the last several years. Its partner Mitsubishi too hasn't had a huge success in India, compared to some of the multi-national rivals. Last fiscal, for instance, Hindustan Motors sold 10,097 units, lower than the 11,003 units it sold in 2009-10.

The CK Birla controlled company has started taking some steps to stem the decline. It last month began road shows to showcase some of its different models including the various variants of Ambassador and commercial vehicle Winner. Hindustan Motors has said it will expand its bouquet of offerings this year.

It plans to launch a complete new generation of sports utility vehicle Pajero, a seven-seater variant of the Outlander and upgraded Montero, all from the Mitsubishi stable, Hindustan Motors said in its annual report.

The company also said it plans to launch two new variants of its Ambassador - one as a pickup and another as a commercial passenger carrier; facelift of the Winner and a passenger carrier version of the Winner.

Hindustan Motors shares were down 0.3% at Rs 17.50 in late afternoon trade on NSE.

Nachiket Kelkar
nachiket.kelkar@network18online.com