HM losses continue

Hindustan Motors, maker of the iconic Ambassador car, today said it would take “necessary steps” to ensure the car maker’s net worth, already eroded by more than 50 per cent by the end of 2009-10, does not decline further.

Accumulated losses as on March 31 were Rs 132.23 crore. The peak net worth was Rs 164.61 crore.

“The company is taking necessary steps to protect further erosion. However, the company will report to the Board for Industrial and Financial Reconstruction about such erosion of net worth,”

C K Birla, chairman, said at the 68th annual general meeting.

The net loss reported today for the quarter ended June 30 was Rs 19.7 crore, as against Rs 21.8 crore for the corresponding quarter of the last financial year. Net sales, however, grew by 22.9 per cent for the period under review at Rs 148.5 crore, compared to Rs 120.8 crore for the first quarter last year.

The car maker intends to streamline its component business to increase production volumes for castings and forgings through de-bottlenecking the manufacturing processes and tooling capacities.