New Delhi, June 7: Max India Ltd has reported almost 26 per cent fall in its net profit for the year ended March 1997 while turnover of the company stagnated at the previous year's level.

The turnover of the flagship company of Analjit Singh-controlled Max India group was up marginally to Rs 113.4 crore from Rs 112.9 crore reported in 1995-96. Net profit of the company fell to Rs 8.89 crore in 1996-97 from Rs 12.01 crore in the previous year.

Max India's cash profit was down to Rs 17.10 crore from Rs 18.90 crore during the period under review.

The company in a statement here on Saturday stated its profits had dropped for the first time in its history due to start up losses incurred in setting up greenfield bulk drugs project at Nanjangud, near Mysore in Karnataka.

The cost of carrying the investments in Max India's joint ventures has also contributed to a drop in profits, the company said.

According to the company, 1995-96 was the year of investment, strategic growth and organisational restructuring.

Max India Managing Director said: ``As the recent growth for Max India has substantially come through its joint venture projects which are all in the start up phase, the intrinsic strength of the investments of Max India's shareholders will be truly reflected as these business become more mature over the next two years.''

Copyright © 1997 Indian Express Newspapers (Bombay) Ltd.