Gurgaon, 23 October 2002

FINANCIAL RESULTS

Quarter – June-September 2002

This quarter’s results continue to demonstrate the benefits of the Company’s restructuring exercise. With improved performance from the businesses, profit before tax doubled to Rs 26.2 cr. This, together with higher exceptional income resulted in Profit after Tax of Rs 19.8 cr, an improvement of 97% over the same period in the previous year.

The figures for the quarter are not comparable with those of the corresponding period of the previous year in view of business disposals and acquisitions. Net sales from continuing businesses were up 6% and operating profits grew by 50%.

Exceptional items included profit on sale of property of Rs 670 lacs. Interest at Rs 102 lacs was lower than last quarter because of reduction in interest rates and higher cash generation.

Half Year – April -September 2002

Net sales and operating profit from continuing businesses for the half year have grown by 8% and 78% respectively. Profit before Tax of Rs. 38.9 cr and Profit after Tax of Rs. 27.9 cr for this period were 98% and 89% higher than the corresponding period of the previous year.

BUSINESS SEGMENTS

Paints: Paints grew ahead of the market during this quarter with both Decorative and Refinish segments showing strong growth in premium brands. The business turned in a segment profit of Rs 4.1 cr, which was achieved through improved mix and cost savings.

Industrial Specialties: Sales and profits grew with a strong growth in National Starch’s Adhesives. Despite growth in Textile sector, Uniqema performance was affected by shortfall in Agro Chemicals sector due to poor monsoon.

Industrial Chemicals: Nitrocellulose grew 7% on account of higher exports and alongwith cost savings translated to higher profit growth. Synetix sales grew 19% following the benefit of the expansion of the product range. Rubber Chemicals, however, continued to suffer from low selling prices even though it achieved higher exports during this period.

For further information:

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