Hindustan Motors turns profitable
By Our Corporate Bureau | 16 Aug 2005
New Delhi: Hindustan Motors'' 15-month extended accounting year ending June 30, 2005, recorded net sales of Rs1,048.64 crore — up from Rs729.20 crore in the previous 12 months, representing an annualised increase of 15 per cent.
Profit before interest and depreciation is at Rs202.26 crore for the 15-month period. This includes the gain from sale of two of the business units — the Power Unit Plant (PUP) at Pithampur and Power Product Division (PPD) at Hosur, as a going concern, to AVTEC Limited, which resulted in Rs.190.42 crore on account of profit on sale as well as divestment of shares in AVTEC Limited..
The company holds 49 per cent of the equity share capital of AVTEC Limited as on 30th June 2005.
After writing off the deferred tax asset, in line with AS22 of Rs41.29 crores, profit after tax is Rs61.20 crore in the 15 month period compared to a loss of Rs80.83 crore in the previous year.
The company has changed some of the accounting policies