HMT Limited , a diversified engineering company, has released its financial results for the first quarter, revealing a mixed performance across its standalone and consolidated operations.

Standalone Performance

On a standalone basis, HMT Limited demonstrated resilience with a notable increase in profitability. The company reported a standalone profit of Rs 1,214.00 lakhs for Q1, up from Rs 1,110.00 lakhs in the corresponding quarter of the previous year. This represents a year-on-year growth of approximately 9.37% in standalone profit.

The total income for the standalone entity stood at Rs 2,117.00 lakhs, indicating a robust revenue stream. The company's earnings per share (EPS) from continuing operations on a standalone basis was Rs 0.34, reflecting positive returns for shareholders.

Consolidated Results

However, the consolidated picture presents a more challenging scenario. The HMT Group, on a consolidated basis, recorded a loss of Rs 2,777.00 lakhs in Q1. While this represents a marginal improvement from the loss of Rs 2,894.00 lakhs in the same quarter last year, it underscores the ongoing challenges faced by the group's subsidiaries.

The consolidated total income for the quarter was reported at Rs 3,728.00 lakhs. The consolidated earnings per share stood at negative Rs 0.78, highlighting the impact of the group's overall performance on shareholder value.

Segment Performance

Breaking down the consolidated results by segment:

The Machine Tools segment, while generating the highest revenue, faced significant challenges with a substantial segment loss. The 'Others' category showed promise with a positive segment result, potentially offsetting some of the losses from other divisions.

Balance Sheet Highlights

As of the end of the quarter, HMT Limited's consolidated balance sheet showed:

• Total Assets: Rs 51,883.00 lakhs
• Total Liabilities: Rs 244,530.00 lakhs

The substantial difference between assets and liabilities indicates ongoing financial pressures for the group.

Management Commentary

The Board of Directors approved these results at their meeting. The company stated that the financial statements were prepared on a going concern basis, considering the realisable value of non-current assets held for sale, support from the Government of India, and other business plans.

Conclusion

While HMT Limited's standalone entity shows signs of improvement with increased profitability, the consolidated results reflect ongoing challenges across the group. The company's strategy to focus on its core strengths and potential government support will be crucial in navigating the path to overall profitability in the coming quarters.

Investors and stakeholders will be closely watching HMT Limited's performance in subsequent quarters to assess the effectiveness of its turnaround efforts and the impact of any strategic initiatives undertaken by the management.

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:

1. Inventory valuation discrepancies
2. Non-compliance with expected credit loss models
3. Lack of external confirmations for party balances
4. 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.