NEW DELHI, Oct 30 (Reuters) - Hindustan Motors Ltd, one of India's oldest car companies, said on Wednesday second-quarter net profit soared 44.4 percent from a year ago to 38.7 million rupees helped by cost cuts.
The Calcutta-headquartered maker of vehicles such as the Ambassador car and the Mitsubishi Lancer, said the July-September profit represented a turnaround after a gap of three years.
"Due to sustained cost reduction measures...localization efforts in the respect of Lancer cars and a gradual reduction in manpower at the Uttarpara plant...there has been a significant improvement in profitability," the company said in a statement.
After the announcement, the company's shares were up 7.86 percent at 7.55 rupees at 0730 GMT on the Bombay Stock Exchange, outpacing the benchmark index which was 0.23 percent higher.
Hindustan Motors posted a net profit of 26.8 million rupees in the second quarter last year but that was due mainly to a large one-time tax credit. Before tax adjustments, it had a net loss of 82.6 million rupees.
Net sales rose 3.8 percent in the second quarter to 2.48 billion rupees. Interest costs fell 12 percent thanks to repayment of some loans and a fall in interest charges.
Sales of its Ambassador cars jumped 15 percent in the first half of this financial year while sales of the Lancer car, which it makes in collaboration with Japan's Mitsubishi Motor Corp and the RTV utility vehicles were marginally lower.
It makes the RTV utility vehicle with design inputs from Australia's OKA Motors. ($1=48.392 rupees)