Three-wheeler maker Kinetic Motor Company (KMCL) today announced a net profit of Rs 97.61 crore in the year ended September 30, 2009.
The results for the year in review were not comparable as it underwent major business restructuring and selling of assets.
The company had incurred a net loss of Rs 114.82 crore during the 18-month period ended September 30, 2008, Kinetic Motor Company said in a filing with the Bombay Stock Exchange (BSE).
The company earned a total income of Rs 32.23 crore in the year under review whereas it had Rs 257.71 crore in the 18-month period ended September 30, 2008.
During the 12-month period ended September 30, 2009, the company successfully carried out a major restructuring of its business activities.
The company has transferred the assets relating to its two-wheeler business to Mahindra Two Wheelers (MTWL), a Mahindra group firm, for Rs 102 crore in cash and a 20 per cent holding in the capital of MTWL.
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The sales proceeds were used to pay off 100 per cent of the secured loan liabilities of KMCL, it said.
The balance of the sales proceeds are being utilised for settling the liabilities to the unsecured creditors of KMCL, it said.
As a result, the total unsecured liabilities have been reduced by about 85 per cent of their year-beginning balance.
The company continues to hold the 20 per cent stake of the face value of Rs. 29.5 crore in MTWL, it added.