HM board met in New Delhi on Thursday and approved the company's proposal to restructure itself. The board also approved the company's scheme of arrangement entailing segregation and realignment of CCP business unit at Tiruvallur as well as other business units in two different entities. The move is expected to help HM and HMFC to pursue and accelerate their respective growth plans. Post demerger, Hindustan Motors will manage its Uttarpara plant which manufactures the iconic Ambassador cars including 1500 and 2000 cc diesel, 1800 cc petrol, CNG and LPG variants, light commercial vehicle (1-tonne payload mini-truck Winner 1.5 lt. and 2.0 lt. diesel) and Winner 1.8 lt. CNG, and auto components. It will also have run Pithampur unit near Indore in Madhya Pradesh which produces both variants of Winner. The Chennai unit at Tiruvallur manufactures Pajero SFX (2002), Cedia (2006), Montero (2009), Outlander (2010) and Lancer Evolution X in 2010 and Pajero Sport as per the technical collaboration between HM and Mitsubishi Motors Corporation of Japan. In consideration of the demerger, HM shareholders will get one equity share of Rs 5 each of HMFC for every thirteen equity shares of Rs 5 each held by them. |
Originally Posted by anandpadhye
(Post 3012885)
What does this actually mean? HMFC is a Mitsubishi owned company? If not, how will Mitsu breath free? And what a dispassionate name this - "Hindustan Motors Financial Conrportation" - for the unit that makes EVO-X and the likes:Frustrati |
Originally Posted by sarthakgupta
(Post 3013117)
This way (loss making) HM |
Originally Posted by CrAzY dRiVeR
(Post 3013139)
Loss making HM? They would have got return on their investments few decades ago, and they still sell around 500 units per month, year after year, for not so cheap prices! :D I dont think this would is going to benefit Mitsu, unless it is completely independant from HM! :Frustrati |
Hindustan Motors Limited (HML) has been consistently posting losses since FY09, except in FY11 where the net profit stood at Rs.0.75 crore. In the last 10 quarters, the company has managed to profit all of four times. HML announced their results for Q1 FY13 on 13 August 2012 wherein the company reported a decline in net income from operations of 12.76 per cent, from Rs.119.86 crore in Q1 FY12 to Rs.104.56 crore in Q1 FY13. The company also posted a loss of Rs.35.49 crore in Q1 FY13 as compared to the profit of Rs.17.2 crore in Q1 FY12. |
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