Hindustan Motors Limited (HM) has reported a net profit of Rs 4.16 crore for the quarter ended June 30, marking a significant turnaround from a loss of Rs 71 lakh in the previous quarter. The company's financial results, approved by its Board of Directors, reveal a total income of Rs 5.11 crore for the quarter, primarily derived from other income.

Financial Performance

The company's other income for the quarter included Rs 3.62 crore from unspent liabilities and provisions no longer required, specifically related to the settlement of Uttarpara Municipal Tax dues. This contributed significantly to the company's profitability for the period.

Operational Changes and Challenges

HM continues to face operational challenges, with the company not having any significant operations for an extended period. The Government of West Bengal has resumed and taken possession of 395 acres of land that comprised the factory at Uttarpara, following legal proceedings that concluded with the Supreme Court dismissing the company's appeal in July.

Despite these challenges, the company's management maintains a 'going concern' basis for its financial statements. HM has been continuously rationalizing costs post the "suspension of work" at the Uttarpara plant, which has been in effect since May 24, 2014.

Financial Position

As of March 31, Hindustan Motors reported:

The company remains debt-free in terms of financial debt, with liabilities mainly on employee accounts, trade payables, and other obligations. The current assets exceed current liabilities, indicating sufficient liquidity to meet its liabilities.

Corporate Governance and Future Plans

In a significant move, the Board of Directors has approved a proposal for voluntary delisting of the company's equity shares from the National Stock Exchange (NSE). However, HM will continue to be listed on the BSE Limited, which has nationwide trading terminals.

Additionally, the Board has decided to reappoint Mr. Om Prakash Gupta as an Independent Director for a second five-year term, subject to shareholder approval at the upcoming Annual General Meeting.

Outlook

Hindustan Motors is actively exploring new avenues for business growth and is seeking new business or technology partners to capitalize on its remaining assets and generate additional revenue. The company's ability to adapt and find new revenue streams will be crucial for its future viability, especially in light of the recent land resumption and ongoing operational challenges.

As Hindustan Motors navigates through these significant changes, stakeholders will be closely watching the company's efforts to revitalize its business model and return to sustainable operations.

Hindustan Motors Limited (HML) has announced its financial results for the quarter ended June 30, 2025, revealing a significant turnaround in its financial performance. The company reported a net profit of Rs 416.00 lakhs, a stark contrast to the loss of Rs 71.00 lakhs in the previous quarter. This positive shift comes amidst several strategic decisions and challenges faced by the iconic Indian automaker.

Financial Performance

The company's total income for the quarter stood at Rs 511.00 lakhs, primarily driven by other income. A substantial portion of this, Rs 361.73 lakhs, came from unspent liabilities and provisions no longer required, specifically related to Uttarpara Municipal Tax settlements.

Strategic Decisions

The Board of Directors has approved two significant decisions:

1. Voluntary Delisting from NSE: HML has decided to voluntarily delist its equity shares from the National Stock Exchange (NSE). The company will continue to be listed on the BSE Limited, which has nationwide trading terminals.

2. Director Reappointment: Mr. Om Prakash Gupta has been reappointed as an Independent Director for a second five-year term, subject to shareholder approval.

Land Resumption and Legal Challenges

In a significant development, the West Bengal government has taken possession of 395 acres of the company's Uttarpara plant land. This action follows a series of legal proceedings:

• The Land Reform Commissioner's order dated November 9, 2022, to resume the land.
• HML's challenge in the West Bengal Land Reforms and Tenancy Tribunal, which was dismissed on March 13, 2024.
• An appeal to the Calcutta High Court, dismissed on May 22, 2025.
• A Special Leave Petition to the Supreme Court, which was dismissed on July 16, 2025.

The state government took possession of the land on July 11, 2025.

Financial Position and Future Outlook

Despite these challenges, HML reports improvements in its financial position:

• The company's accumulated losses have reduced to Rs 10,751.60 lakhs as of March 31, 2025, down from Rs 25,218.07 lakhs in March 2017.
• Net worth has improved to Rs 2,461.44 lakhs as of March 31, 2025, compared to Rs 904.69 lakhs a year earlier.
• HML remains debt-free, with liabilities primarily related to employee accounts, trade payables, and other operational liabilities.

The company continues to explore new avenues for business growth and is actively seeking business or technology partners to capitalize on its remaining assets and generate additional revenue.

While the loss of significant land assets and ongoing operational challenges present uncertainties, Hindustan Motors' management remains committed to preparing financial statements on a 'going concern' basis. The company's ability to adapt and find new growth opportunities will be crucial in the coming months as it navigates these substantial changes in its operational landscape.