FINANCIAL RESULTS

The results for the quarter are not comparable with those of the corresponding period of the previous year in view of the sale of the Synetix business in November 2002.

Pending completion of the shareholders' approval and other regulatory approvals for divestment of Nitrocellulose and Trading businesses, the outturn from these businesses is included in the quarter's results.

QUARTER October-December 2003

Sales and operating profit from the continuing businesses grew by 18% and 37% respectively compared to the corresponding period last year with strong growth in Paints and National Starch. Exceptional items include profit of Rs 52.3 crores from the sale of Company's 51% shareholding in Indian Explosives Limited. However, Profit before Tax (PBT) at Rs 68.5 crores and Profit after Tax (PAT) at Rs 61.5 crores were lower than corresponding period last year due to higher exceptional income in the last year.

BUSINESS SEGMENTS

Paints: Paints revenue grew ahead of market with good performance in both Decorative and Refinish segments. This together with control on costs resulted in a segment profit of Rs 933 lacs. Launch of new products in Decorative segment was well received in the market.

Industrial Specialties: National Starch sales and profit were significantly better than last year on the back of higher volumes and introduction of new products. Overall sales of Uniqema were better than last year, but profit was at the same level due to increase in input costs.

Industrial Chemicals: Continuing businesses sales grew by 6% compared to the corresponding period last year due to higher export volumes. Rubber Chemicals business performance continued to be affected by lower sales realizations due to weak global prices and depreciation of dollar and higher prices of certain key raw materials. Total segment sales and profit were lower compared to the corresponding period last year due to divestment of Synetix.

NINE MONTHS April-December 2003

Sales and operating profit from continuing businesses for the nine-month period have grown by 14% and 23% respectively. However, total PBT from operations at Rs 47 Crores was lower than the corresponding figures last year due to divestment of Synetix business in November 2002. This together with lower exceptional income resulted in PAT at Rs 76 crores as against Rs 93 crores in the corresponding period last year


Gurgaon
23 January, 2004

For further information:

R Guha
Tel: +91 124 2540810
Fax: +91 124 2540839
E mail: r_guha@ici.com