After providing for depreciation, the company registered a net loss of Rs 4 crores. Atul managing director, Sunil S Lalbhai said, "While there is an improvement in our performance in the first quarter, the extent and pace has not been satisfactory. We are nonetheless confident of a complete turnaround in this year".

Meanwhile, another Lalbhai group company, Amal Products has registered a lower net loss of Rs 1 crore (previous year Rs 3 crores) on a turnover of Rs 10 crores for the quarter ended June 30, 1999, as compared with a net profit of Rs 50 lakhs on a turnover of Rs 12 crore in the corresponding period of the previous year.

According to a company press release, the company has had five yearsof steady growth with sales touching Rs 43 crores and a net profit of Rs 4 crores in 1997-98.