Gurgaon, 18 July 2005

FINANCIAL RESULTS

QUARTER: April - June 2005

Total sales income at Rs 244 cr reflect a 25% growth over the previous year. All businesses performed significantly better than last year. Aided by an increased income from investments made during 2004-05, the operating profit grew 38% to Rs 29.1 cr (vs Rs 21.1 cr of the previous year's corresponding quarter).

Change in Exceptional Items (charge for the quarter of Rs 0.7 cr against an income of
Rs 0.8 cr of last year's corresponding period) was due to income of Rs 1.5 cr from sale of property last year. Tax charge includes provision for fringe benefit tax of Rs 0.5 cr. Profit after Tax at Rs 15.8 cr is 24% higher than that in the last year's corresponding quarter.

Business Segments

Paints: Sales for the quarter at Rs 155 cr grew by 24% over the same period last year. Key brands in both the Decoratives and Refinish segments registered strong growth Improved segment Profit for the quarter at Rs 8.3 cr (previous year Rs 5.8 cr) was achieved through higher volumes, improved mix and control on costs.

Chemicals: During the quarter, sales in this segment at Rs 90 cr grew by 25%. Segment profit at Rs 8.9 cr represents a growth of 75% compared to the corresponding period last year. Growth in the Textile industry, following the abolition of quota regime and the commissioning of Polymer plant towards the end of last fiscal year, contributed to the improved performance in Uniqema and National Starch respectively. Rubber Chemicals achieved higher sales mainly in the domestic market.