Hindustan Motors Q2 net
up by 44.4%
By siliconindia | Wednesday, 30 October 2002, 08:00 Hrs
KOLKATA: Hindustan Motors Ltd, one of India's oldest car companies, said on Wednesday that its second-quarter net profit soared 44.4 percent from a year ago to Rs 3.87 crore. "There has been a significant jump in profitability because of sustained cost reduction measures and a gradual reduction in manpower at the Uttarpara plant," the company said in a statement. The company, which makes vehicles such as the Ambassador car and the Mitsubishi Lancer, stated that the July-September profit represented a turnaround after a gap of three years. It posted a net profit of Rs 2.68 crore in the second quarter last year but that was due mainly to a large one-time tax credit. Before tax adjustments, it had a net loss of 82.6 million rupees. Net sales rose 3.8 percent in the second quarter to Rs 248 crore. Interest costs fell 12 percent thanks to repayment of some loans and a fall in interest charges. Sales of its Ambassador cars jumped 15 percent in the first half of this financial year while sales of the Lancer car, which it makes in collaboration with Japan's Mitsubishi Motor Corp and the RTV utility vehicles were marginally lower.