Hindustan Motors Limited has informed the Exchange regarding Board meeting held on May 22, 2025.
Awaiting price reaction for this filing.
Hindustan Motors reported its audited results for Q4 and FY25. Total income for the full year fell to Rs. 2,438 lakhs from Rs. 3,016 lakhs in FY24, a decline of around 19%. The company posted a net profit of Rs. 1,567 lakhs for FY25 (vs Rs. 2,542 lakhs in FY24), but Q4 alone swung to a loss of Rs. 88 lakhs from a profit of Rs. 334 lakhs a year ago. Earnings per share for FY25 stood at Rs. 0.75 (vs Rs. 1.22). Notably, the profits are not from operations, as the Uttarpara plant has been under suspension of work since May 2014 — the FY25 profit includes a one-time gain of Rs. 1,743 lakhs from the sale of old property, plant and equipment. Operating cash flow remained deeply negative at Rs. (2,694) lakhs. The company is debt-free, net worth turned positive at Rs. 2,461 lakhs, and accumulated losses have shrunk to Rs. 10,752 lakhs from Rs. 25,218 lakhs in 2017. The auditor flagged a material uncertainty related to going concern and an emphasis of matter regarding the West Bengal government's land resumption order at Uttarpara.
For shareholders, the headline profit is misleading — earnings depend on one-time asset sales, not business operations, and the core business remains shut. The auditor's going-concern uncertainty, the pending Uttarpara land case, and negative operating cash flow are significant red flags. The stock price may remain volatile and speculative until a new business plan materializes.