HMT Limited Reports Mixed Financial Performance for FY2025
HMT Limited's FY2025 financial results show a stark contrast between standalone and consolidated performance. Standalone figures reveal a profit of Rs 1,610.00 lakhs from continuing operations, with total income at Rs 8,515.00 lakhs. However, consolidated results show a net loss of Rs 14,306.00 lakhs from continuing operations, with total income at Rs 20,471.00 lakhs. Q4 saw a consolidated net loss of Rs 358.00 million, with revenue down to Rs 398.00 million. The company's consolidated net worth stands at negative Rs 1,89,790.00 lakhs, indicating complete erosion of the HMT Group's net worth. Auditors have issued qualified opinions citing inventory valuation issues, non-compliance with credit loss models, and GST reconciliation problems. Despite challenges, management continues on a going concern basis, citing realisable asset values and government support.
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HMT Limited , a diversified engineering company, has reported a mixed financial performance for the fiscal year 2025 (FY2025) and the fourth quarter (Q4) ended March 31, 2025. The company's standalone results show a profit, while the consolidated figures reveal significant losses.
Standalone Performance
For FY2025, HMT Limited reported:
- Total income: Rs 8,515.00 lakhs
- Profit from continuing operations: Rs 1,610.00 lakhs
- Revenue from operations: Rs 2,617.00 lakhs
Consolidated Results
The consolidated financial results paint a different picture:
- Net loss from continuing operations: Rs 14,306.00 lakhs
- Total income: Rs 20,471.00 lakhs
Q4 Performance
In the fourth quarter of FY2025:
- Consolidated net loss: Rs 358.00 million
- Q4 revenue: Rs 398.00 million (down from Rs 489.00 million year-over-year)
This indicates a decrease in both profitability and top-line performance compared to the same quarter of the previous year, when the company reported a profit of Rs 26,410.00 million.
Financial Position
As of March 31, 2025:
- Standalone net worth: Rs 47,493.00 lakhs
- Consolidated net worth: Negative Rs 1,89,790.00 lakhs
The negative consolidated net worth indicates a complete erosion of the HMT Group's net worth.
Auditor's Qualifications
The statutory auditors have issued qualified opinions on both standalone and consolidated financial statements, citing several issues:
- Inventory valuation discrepancies
- Non-compliance with expected credit loss models
- Lack of external confirmations for party balances
- GST reconciliation problems
Segment Performance
For FY2025:
- Machine Tools segment: Loss before interest and taxes of Rs 10,192.00 lakhs
- Food Processing Machinery segment: Profit of Rs 67.00 lakhs
Management's Outlook
Despite the challenges, HMT Limited's management continues to prepare its financial statements on a going concern basis. They cite the following reasons for this approach:
- Realisable value of non-current assets held for sale
- Support from the Government of India
- Other business plans
The company's Board of Directors approved these financial results at their meeting held on July 23, 2025. As HMT Limited navigates through its financial difficulties, stakeholders will be closely watching the company's efforts to improve its consolidated performance and address the auditors' concerns in the coming fiscal year.
Historical Stock Returns for HMT
| 1 Day | 5 Days | 1 Month | 6 Months | 1 Year | 5 Years |
|---|---|---|---|---|---|
| -3.37% | +5.14% | +11.62% | +31.88% | -25.08% | +271.74% |
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