Hindustan Tin Works Limited has received an order from the Proper Officer (GST) cum ETO, Ward-5 (Sonipat), dropping proceedings initiated under Section 74 of the Haryana Goods and Services Tax (HGST) Act, 2017 for the financial year 2020-21. The order, dated June 5, 2026, was received by the company on the same day. This development resolves the potential liability arising from the show cause notice issued previously.

The company had previously received a show cause notice on May 19, 2026, from the Excise & Taxation Officer cum Proper Officer (State GST), Ward-05, Sonipat. The notice had alleged a demand of GST amounting to ₹2,09,16,858, along with interest and penalty totaling ₹6,47,23,062 for the period from April 2020 to March 2021.

Details of the Order

The following table outlines the key details of the regulatory communication and the subsequent order:

Impact Assessment

With the proceedings dropped by the authority, the company stated that there is no impact on its financial, operational, or other activities. The issuance of the dropping order effectively nullifies the monetary demands specified in the earlier show cause notice. The disclosure was made to the stock exchanges in compliance with Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015.

Hindustan Tin Works Limited reported a 32.3% decline in net profit to ₹831.40 lakh for the financial year ended March 31, 2026, down from ₹1,227.66 lakh in the previous year. The company's revenue from operations for the year increased to ₹42,047.57 lakh compared to ₹40,628.79 lakh in FY25. The board of directors has recommended a final dividend of ₹0.75 per equity share for the financial year, subject to the approval of shareholders.

For the quarter ended March 31, 2026, the company recorded a net profit of ₹142.32 lakh, a decrease from ₹343.87 lakh in the corresponding quarter of the previous year. Revenue from operations for the quarter stood at ₹9,645.19 lakh, lower than the ₹10,095.42 lakh reported in the same period last year. Total income for the quarter was ₹9,835.73 lakh. The basic and diluted earnings per share (EPS) for the quarter were reported at ₹1.85, down from ₹3.05 in the prior year quarter.

Financial Performance

The company's total expenses for FY26 amounted to ₹41,360.01 lakh, an increase from ₹39,510.69 lakh in the previous year. Finance costs rose significantly to ₹982.47 lakh for the year from ₹675.10 lakh in FY25. The profit before tax for the year stood at ₹1,149.33 lakh, a decline from ₹1,617.43 lakh in the preceding year. The total comprehensive income for the year after tax was ₹885.77 lakh.

Dividend and Audit Report

The board of directors recommended a dividend of ₹0.75 per equity share, which translates to 7.5% on a face value of ₹10 each. This dividend is subject to approval by the shareholders at the upcoming Annual General Meeting. The statutory auditors, Messrs Mukesh Raj & Co. Chartered Accountants, issued an audit report with an unmodified opinion on the standalone financial results for the year ended March 31, 2026.

Segment and Operational Details

The company operates primarily in the manufacturing and trading segments. For the year ended March 31, 2026, the manufacturing segment generated revenue of ₹41,961.09 lakh, while the trading segment contributed ₹86.48 lakh. Geographically, domestic revenue stood at ₹33,516.28 lakh, and export revenue was ₹8,531.29 lakh. The company also noted an incremental gratuity liability of ₹5.46 lakhs for the year arising from past service costs due to the Labour Codes notified by the Government of India.