NEW DELHI, July 1: Mysore Cements Ltd, part of the Rs 1500 S K Birla Group, has recorded a net loss of Rs 14.17 crore during the financial year 1996-97. In the previous fiscal the company had shown a net profit of Rs 31.81 crore.

Mysore Cements has recorded a 0.10 per cent decline in its turnover during the financial year 1996-97. As against a Rs 386.14 crore during the financial year 1995-96 the company has recorded a turnover of Rs 347.75 crore during the last fiscal.

The board of directors of the company has recommeded a dividend of 10 per cent. The company has attributed its net losses and decline in the turnover to the increased cost of production and lower realisation. The capacity utilisation of the company has increased to about 82 per cent during this period.

In a press statement the company claimed that due to increase in the costs of power, coal and freight Mysore Cements' cost of production increased to Rs 175 per tonne while the realisations were lower by about Rs 100 per tonne due to the extremely depressed market condition.

High interest and other financial charges due to the liquidity crunch and higher depreciation have also contributed to the poor performance of the company. During 1996-97 the company's interest charges had increased from Rs 12.96 crore (1995-96) to Rs 19.12 crore. Further, a depreciation of Rs 15.84 crore as against Rs 13.59 crore in 1995-96 has forced the company's management to pay dividend from the company's reserves.

Copyright © 1997 Indian Express Newspapers (Bombay) Ltd.