Takata has sunk into the red as the costs of massive global airbag recalls accumulate.

Takata has posted a net loss of 29.6 billion yen in the fiscal year to the end of March.

Some 20m vehicles have been recalled worldwide because of the risk that faulty Takata airbags could cause harm to vehicle occupants.

However, Takata also said that it expects to post a 20 billion yen net profit in the current business year.

“At this point it is difficult to rationally estimate (the) financial impact of the lawsuits,” the company said in a statement.

Despite the negative impact of airbag recalls, Takata also said it booked a 25% surge in operating profit and 15% jump in revenue.

Analysts say the company’s financial position is also helped by deep cash reserves.