Indian Rayon posts Rs 241.23 cr loss

MUMBAI, APR 20: Indian Rayon and Industries Ltd, belonging to the Aditya Birla group, has reported a net loss of Rs 241.23 crore for the y...

MUMBAI, APR 20: Indian Rayon and Industries Ltd, belonging to the Aditya Birla group, has reported a net loss of Rs 241.23 crore for the year ended March 31, 2000 against a net profit of Rs 106.04 crore posted in 1998-99.

"The net profit has been impacted negatively due to the provision of a one time non-cash loss of Rs 398.82 crore on the assets of sea water magnesia plant by bringing down value of assets to their realisable worth on the closure of the plant," said Indian Rayon president and chief financial officer Adesh Gupta.

In spite of the loss, the company has recommended a dividend of 10 per cent as compared to 40 per cent paid in 1998-99, he said adding, Indian Rayon recorded a net turnover of Rs 1,071.90 crore in 1999-2000. During the fourth quarter (January to March 2000), Indian Rayon recorded a turnover of Rs 317.29 crore as against Rs 252.32 posted in the same period of previous fiscal, he said.

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The company has reported a gross turnover of Rs 1186.95 crore, while the operating profit stood at Rs 205.32 crore. Its sales figure for 1998-99 was at Rs 1,304.53 crore with profit pegged at Rs 106.04 crore.

However, the figures are not comparable with 1999-2000 results as the previous year’s result included the working capital of cement division – Grasim Cement – for five months which was demerged from the company on September 1, 1998, Gupta said.

The company in January 2000 acquired Madura Garments, the readymade garments division of Madura Coats Ltd for a consideration of Rs 189.23 crore. This year’s annual result also includes three months operations of Madura Garments business from January 1 to March 31, 2000.