Automobile manufacturer Hindustan Motors Thursday reported a net loss of Rs.15.68 crore for the first quarter of the current fiscal.
The company had reported a net loss of Rs.25.10 crore in the corresponding quarter of last fiscal.
Its income from operations fell by 90.65 percent at Rs.8.78 crore from Rs.93.97 crore. The net sales during the quarter under review declined by 91.32 percent at Rs.8.05 crore from Rs.92.76 crore.
According to a corporate filing at the Bombay Stock Exchange, the company said that "The operating results have been adversely affected due to adverse market conditions. The company has also declared 'suspension of work' at its Uattarpara plant as of May 24."
The company said that the management is in the process of restructuring the operations and has hired a consultant to give an external perspective on the challenges and solutions.
The company added that the West Bengal government's claim of Rs.194.47 crore as refund for the sale of excess land at Uttarpara, along with interest, had not been settled under legal advice.
