Hindustan Motors posts Rs 75 cr net profit in Q4

Our Corporate Bureau

Kolkata, May 16: CK Birla flagship Hindustan Motors has driven out of the rut of red ink with a net profit of Rs 74.88 crore in the last quarter of 2000-2001, against a loss of Rs 4.75 crore in the same quarter of the previous year.

However, the profit came from the sale of its earthmoving equipment division in February this year and income from operations has declined quarter-on-quarter and year-on-year.

According to the audited financial results for the full year, the sale of the earthmoving equipment division as a going concern to Caterpillar India fetched the company a profit of Rs 100.93 crore that has been included in “other income”. Without this prop, the profit of Rs 111.71 crore before interest and depreciation would have turned into another loss.

The car-maker, which makes the ubiquitous Ambassador as well as the premium Mitsubishi Lancer, had sold its earthmoving equipment division with factories located in Tiruvallur in Tamil Nadu and Pondicherry to Caterpillar India in February 2001.

Net sales, however, dropped from Rs 556 crore to Rs 488 crore during the last quarter of 2000-01.
The other income also helped the company reduce its net loss for the full year by almost 70 per cent to Rs 18.97 crore from Rs 62.28 crore in the year to March 31, 2000. For the full year, income from operations dropped from Rs 1,497 crore to Rs 1,388 crore.