The company sold two of its divisions -- low-voltage equipment manufacturing and engineering plastics business at Pondicherry to GE Electrical Distribution & Control India Ltd for Rs 75 crore, a subsidiary of General Electric Co of the US.

According to the audited financial results for the year to March 31, 1999, Alstom made a Rs 48.76 crore profit from the sale of low-voltage equipment manufacturing division which used to make fusegear, low voltage switchgear and controlgear products.

It noted that the full profit on the sale of low voltage component business is based on the closing net asset value as on June 30, 1998.

Despite this sale, thecompany failed to post profits mainly due to a substantial dip in sales turnover and a huge cost incurred towards employee voluntary scheme. Its sales turnover fell by 19.89 per cent to Rs 437.42 crore to March 31, 1999, as compared to Rs 546.04 crore in the previous year.

Alstom incurred a Rs 56.43 crore expenditure towards the voluntary retirement scheme during the year against Rs 17.45 crore in the previous year to March 31, 1998.

However, its interest cost has dipped substantially to Rs 36 lakh during 1998-99 as compared to Rs 6.02 crore in the previous year. The company had announced last year that with the sale of its assets, it planned to repay its loans from the proceeds since high interest cost was causing liquidity problems.

During the year, the company's turnover of Rs 437.42 crore to March 31, 1999, constitutes of Rs 422.78 crore from existing operations and Rs 14.64 crore from discontinued operations.

It had drawn up a drawn up a five-year rehabilitation plan and had identified six areasto the tackle falling margins and profitability caused by a sluggish market and severe competition. The management had felt that after liberalisation of the Indian economy, it is imperative to focus on core competencies.

In fact, the management is yet to find a suitable partner for its energy meters division.

The company has appointed one manager at all locations to handle any Y2K related problems. The company said that it will complete its Y2K complaince project by December 1999. Estimated cost of the Y2K project will be around Rs 2.50 crore including capital expenditure. It said that contingency plan for Y2K problems is in process.