Hindustan Motors net sales increased to Rs 483 crore in H1

New Delhi: Hindustan Motors’ financial results have been taken on record and approved by the company board in its meeting held in New Delhi.

The company’s net sales value for the first six months of the current year has increased to Rs 482.66 crore from Rs 474.20 crore in the corresponding period last year. While sales of Ambassador cars have grown by 15 per cent in this period, sales of lancer cars and RTV vehicles were marginally lower.

Due to sustained cost reduction measures in all the locations, localisation efforts in respect of Lancer cars and gradual reduction in manpower at the Uttarpara plant over the last one year, there has been a significant improvement in profitability.

Against a loss of Rs 3,398 lakh (before deferred tax adjustments) in the first half of the last year, the company has reported a profit of Rs 391 lakh for the first six months.

There has been steady improvement in profitability over the last three quarters. Profit and loss before tax adjustments for the previous three quarters are as follows:

• The quarter ended 31 March 2002: Loss Rs 236 lakh
• The quarter ended 30 June 2002: Loss Rs 137 lakh
• The quarter ended 30 September 2002: Profit of Rs 528 lakh
• The interest burden in the first half is also lower by Rs 405 lakh compared to the previous year due to repayments of certain loans as well as interest rate reduction
• The company has been able to achieve this turnaround after a gap of three years based on continued and sustained efforts across the business units.