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Our Bureau

Kolkata , Feb. 3

THE revival process of the Orissa-based Mangalam Timber Products Ltd, which is hoping to wipe out its accumulated losses in the next two-three years, has been hampered by a strike called by workers.

According to Mr G.S. Gupta, Managing Director, despite the strike, operations at the factory have been carried on normally.

"Our permanent workers have called the strike. However, the management employees and casual staff are working. We are trying to resolve the crisis as early as possible," Mr Gupta told Business Line.

Mangalam Timber, a B.K. Birla group company, is currently on a turnaround path. It is still registered as a sick company and the Board for Industrial and Financial Reconstruction is monitoring its operations.

Posts profit in Q3: The company will soon be seeking de-registration from the BIFR because it has started making profits.

For the quarter ended December 31, 2004, it recorded a net profit of Rs 89.02 lakh, against Rs 17.54 lakh in the corresponding previous period. Gross sales also rose to Rs 16.14 crore from Rs 10.95 crore.

Similar growth was registered for the first nine months of the financial year 2004-05. Against an accumulated loss of Rs 19.44 crore, the company recorded a net profit of Rs 2.17 crore in the first three quarters.

"Though it is difficult to spell out a time period by which we would be able to wipe out all the losses, still we are confident. We are likely to end this year with a net profit of more than Rs 2.5 crore," he said.

Meanwhile, the shareholders have decided to reduce the paid-up capital of the company from Rs 18.32 crore to Rs 7 crore. This would be done by reducing the face value of the existing equity shares to Rs 4 from Rs 10. The BIFR is yet to clear this proposal.

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