Max India was the subject of the market's ire today after the company reported enormous losses of Rs 55.38 crore.

The scrip of the diversified company, in fact, plunged 9% to Rs 76 on BSE in about two hours of trading. A total of 61,341 Max India shares were recorded as volumes on BSE so far. The stock had moved in the Rs 80-85 range over the last few trading sessions.

The company delivered a telling blow to the scrip's fortunes by reporting a huge net loss of Rs 55.38 crore for Q4 ended 31 March 2003 as against a net profit of Rs 9.68 crore in Q4 ended 31 March 2002. Total income for Q4 ended 31 March 2003 was Rs 33.82 crore compared to Rs 60.47 crore in Q4 ended 31 March 2002.

The company posted a net loss of Rs 53.26 crore for FY 2002-03 compared to a net profit of Rs 9.46 crore in FY 2001-02. Total income in FY 2002-03 stood at Rs 162.20 crore. The same was Rs 182 crore in FY 2001-02.

On a consolidated basis, the group posted a net loss of Rs 79.81 crore compared to a net loss of Rs 15.44 crore in FY 2001-02. The consolidated total income in FY 2002-03 was Rs 392.13 crore compared to Rs 344.09 crore in FY 2001-02.

However, consequent to the subsidiarisation of the healthcare business, effective 1 April 2002, financials for the year ended 31 March 2003 exclude the healthcare business and hence are not comparable with the corresponding financials for the previous year.

Max India has diversified business interests ranging from life insurance to information technology, healthcare , BOPP films and clinical research. In the past, it has either exited or reduced its stake in some of its businesses including bulk drugs, cellular telephony, electro-magnetic components, and more recently, in formulations. The last mentioned was sold to Shyam and Hari Bhartiya-controlled Jubilant Organosys.

Earlier, there were reports that Max Healthcare, a 100% subsidiary of Max India, has envisaged an investment plan of Rs 400-450 crore up till 2005. The funds requirement for this would be met through a mixture of debt and equity. Max India has so far invested close to Rs 100 crore in Max Healthcare.

Set up in 2001, Max Healthcare has seven healthcare centres. There are plans to set up 23 more primary care centres (Dr Max Clinics), three day-care surgery centres (Max Medcentres) and two hospitals within the next three years.

In other developments, in August 2002, Max India and the US-based New York Life decided to jointly invest another Rs 50 crore in their 74:26 insurance venture - Max New York Life.