The company made a turnover of Rs 13.89 crore and incurred a net loss of Rs 1.81 crore in April-June 1998, as against a turnover of Rs 11 crore and loss of Rs 2.71 crore in the comparable period last year.

Unaudited financial results taken on record by the company board here on Saturday showed its accumulated losses had reached Rs 111.81 crore.

The company expected improved performance in the second half of 1998-99 as its foundries in Bangalore and Chennai had recently started functioning and would be able to tap the business potential later this year. Similarly, the company had applied for re-establishment of bank limits after the takeover and the board expected banks to respond favourably.

Total expenditure during the first quarter increased from Rs 13.13 crore to Rs 15.28crore while interest and similar charges went up from Rs 23 lakh to Rs 64 lakh. However, the company's base was stronger with the equity capital going up to Rs 105.33 crore from Rs 25.75 crore thanks to infusion of capital by the Indonesian group. The loss after interest, but before depreciation and taxation provisions, stood at Rs 1.47 crore (Rs 2.35 crore) while the depreciation charges were Rs 34 lakh.

Company sources said the business outlook was good for the coming year, but there was a lead time between streamlining of operations and the actual inflow of business.

The first quarter of fiscal 1999 also marked the entry of Polysindo into the company, as the group formally took it over on April 3, 1998.

Under Polysindo, the company had drawn up a detailed business plan, envisaging selective revival of its old businesses and diversification into auto component manufacturing.