Hindustan Motors reports a net loss of INR 8.56 lakh in last quarter of 2014-15

Hindustan Motors, the manufacture of the iconic Indian car Ambassador has reported a net loss of INR 8.56 lakh in the last quarter that ended with March 2015. The company had reported a net profit of INR 12.44 crore for the same quarter of the previous fiscal. Net sales stood at INR 7 lakh for the fourth quarter, while the same was INR 91.72 crore in the same period of previous fiscal, the company said in a BSE filing.

For 2014-15, the company registered a net loss of INR 41.90 crore while the company had reported a net loss of INR 3.07 lakh for the six months ended March 31, 2014. Net sales stood at INR 14.34 crore for the year ended March 31, 2015 while the same was INR 179.53 crore during the six months ended March 31, 2014.

“The figures for the financial year 2014-15 is not comparable with the previous financial year due to the fiscal 2014-15 being for twelve months as against six months in previous financial year, suspension of work at Uttarpara plant since May 24, 2014 and divestment of erstwhile Chennai car plant effective March 30, 2014” the company said.

As the accumulated losses of the company at end of financial year ended September 2013 exceeded its entire net worth, the company has made reference to the Board for Industrial and Financial Reconstruction (BIFR), it added.

Hindustan Motors is not producing the Ambassador car anymore, as work at the company's Uttarpara plant in West Bengal has been suspended since May 24, 2014. The company used to manufacture the Ambassador at its Uttarpara plant, which was the oldest plant in India, before it officially pulled the plug citing lack of capital and poor demand for the iconic Ambassador car.

PTI