The announcement was made after market hours on Friday, 28 June 2013.
Meanwhile, the S&P BSE Sensex was up 92.09 points or 0.47% at 19,487.90.
On BSE, 1.48 lakh shares were traded in the counter as against average daily volume of 1.32 lakh shares in the past one quarter.
The stock hit a high of Rs 9 and a low of Rs 8.31 so far during the day. The stock had hit a 52-week low of Rs 7.48 on Friday, 28 June 2013. The stock had hit a 52-week high of Rs 14.35 on 28 June 2012.
The stock had underperformed the market over the past one month till 28 June 2013, sliding 14.04% compared with the Sensex's 3.79% fall. The scrip had also underperformed the market in past one quarter, declining 11.97% as against Sensex's 2.97% rise.
The small-cap company has equity capital of Rs 92.39 crore. Face value per share is Rs 5.
Hindustan Motors (HML) said it has on Friday, 28 June 2013, signed a memorandum of understanding (MoU) with Isuzu Motors India, a subsidiary of Isuzu Motors, Japan for contract manufacturing of Isuzu SUVs and pickup trucks in India. The components for producing these vehicles will be imported by Isuzu Motors from Thailand and assembled in HML's factory at Thiruvallur near Chennai in Tamil Nadu.
Commenting on the development, Mr. Uttam Bose, Managing Director & CEO, Hindustan Motors said, "Our agreement for contract manufacturing of Isuzu's globally renowned vehicles is a testimony to the state-of-the-art manufacturing facilities at our Thiruvallur plant. The operations will enable HML to optimally utilize its spare capacity at Thiruvallur and make eminent business sense at a time when the Indian economy and the automobile industry, in particular, are passing through testing times. Today's agreement with Isuzu is a strategic move to keep Hindustan Motors on the growth path".
Mr. Takashi Kikuchi, President, Isuzu Motors India said, "We are very confident about the growth prospects of the SUV and LCV market in India, notwithstanding the current slowdown. We are also very happy with the positive feedback of the market to our MU7 SUV and DMAX pickup truck, which we launched in Coimbatore and Hyderabad in March this year by importing these as CBUs from Thailand. We would now like to accelerate and carry forward this positive momentum and expand our sales operations in other parts of India, starting with the Southern region. The collaboration with Hindustan Motors will support us by carrying out assembly of our products at Thiruvallur which is about 70 kms from Sri City, Andhra Pradesh, where our own local manufacturing facility is planned to come up. We can thereby advance the scope of our sales operations and increase the scale of supply volumes without waiting for our local manufacturing facility to be ready. Hindustan Motors and Isuzu Motors have enjoyed good historical relationship, and know each other as business partners very well. The Thiruvallur facility is one of the best automotive manufacturing facilities in India, and can meet the high quality standards of Isuzu Motors".
Isuzu Motors India is a subsidiary of Isuzu Motors, Japan. Known globally for its expertise in diesel engines and for the manufacture of tough and durable vehicles, Isuzu Motors will supply the MU7 sports utility vehicle and the DMAX pickup trucks in India.
Hindustan Motors reported net loss of Rs 1.16 crore in Q4 March 2013, as against net profit of Rs 18.01 crore in Q4 March 2012. Net sales rose 29.5% to Rs 172.03 crore in Q4 March 2013 over Q4 March 2012.
Hindustan Motors (HML) manufactures the Ambassador (1500 and 2000 cc diesel, 1800 cc petrol, CNG and LPG variants) in the passenger car segment, light commercial vehicle 1-tonne payload mini-truck Winner's 1.5 litre and 2 litre diesel versions and a CNG version of Winner and auto components at its Uttarpara plant. The company also runs operations at Pithampur near Indore in Madhya Pradesh where in it produces Winner.
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