SME Times News Bureau | 14 Aug, 2012
Kolkata-based Hindustan Motors, makers of the iconic Ambassador, Monday reported a loss of Rs.35.49 crore for the quarter ended June 30, 2012, against a net profit of Rs.17.2 crore in the same period a year ago.
Net sales of the financially-troubled car maker, promoted by C.K. Birla Group, during the first quarter this fiscal were also down by 12.76 per cent to Rs.104.56 crore as against Rs.119.86 crore in the same period last fiscal.
According to Chandra Kant Birla, chairman of Hindustan Motors, the loss was due to subdued business sentiment in the auto industry and fluctuations in foreign exchange rate.
"Adverse movements of foreign exchange rates, especially Japanese yen and depreciation of rupee, high interest rates along with subdued business interest had an impact on our company," Birla told the shareholders at the company's annual general meeting here.
The managing director of the company, Uttam Bose, said lack of a BS IV diesel variant had been a deterrent to rising volumes.
"We could not sell to 11 cities. But now we are working on a BS IV variant. The proto-testing would happen in October this year and we are likely to introduce this by the beginning of next financial year," he said.
The company, which sold 2,500 Ambassadors last year, is looking to sell about 5000 units this year, besides working on a new variant.