Hindustan Motors Reports Q3 FY25 Financial Results: Profit Rises Amid Cost Rationalization

Kolkata, January 29, 2025 — Hindustan Motors Limited (NSE: HINDMOTORS, BSE: 500500) announced its unaudited financial results for the quarter and nine months ended December 31, 2024, reporting an improvement in profitability as the company continues cost rationalization measures.

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Key Financial Highlights (₹ in Lakhs)​

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Strategic and Financial Updates​

• Cost Rationalization & Debt-Free Status:
  Hindustan Motors continues its cost rationalization efforts following the suspension of work at the Uttarpara plant. Employee costs and other fixed expenses have been significantly reduced, bringing accumulated losses down to ₹10,683.68 lakhs as of December 31, 2024, from ₹25,218.07 lakhs in March 2017.
• Net Worth Improvement:
  The company's net worth has turned positive, standing at ₹2,529.32 lakhs as of December 31, 2024, compared to ₹904.69 lakhs in March 2024 and a negative net worth of ₹(1,632.50) lakhs in March 2023.
• Asset Monetization Efforts:
  Hindustan Motors has monetized old and obsolete assets, including equipment sales, to generate liquidity. In the nine months that ended September, the company reported a gain of ₹1,743.48 lakhs from the disposal of property, plant, and equipment.
• Legal Dispute on Uttarpara Land:
  The West Bengal government has ordered the Uttarpara plant land to be resumed. The company has challenged this decision and filed an appeal in the Calcutta High Court, where the matter is pending.

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Management Commentary​

The board emphasized that Hindustan Motors remains debt-free, aside from liabilities related to employees, trade payables, and other obligations. The company focuses on alternative revenue generation strategies and optimizing asset utilization to improve financial health.

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Outlook​

Hindustan Motors has maintained a strong liquidity position despite no active automobile operations. Management is exploring strategic alternatives, including alternative asset use, to sustain the company’s profitability and cash flow. The company reaffirms its going concern status and remains committed to financial stability.

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Audit Review​

The financial results were reviewed by KAMG & Associates, which did not identify any material misstatements. However, the auditor emphasized the company's lack of operations and ongoing litigation regarding land resumption.

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Conclusion​

Hindustan Motors has posted a net profit of ₹334 lakhs for Q3 FY25, driven by cost control and asset monetization. While operations remain suspended, the company's financial position strengthens, with reduced losses, improved liquidity, and a debt-free balance sheet. The outcome of the Calcutta High Court case regarding the Uttarpara land will be crucial for its long-term strategy.