Gurgaon, 24 January, 2006

FINANCIAL RESULTS
QUARTER: October - December 2005
Total sales/income at Rs 291 cr reflects a 16% growth over the corresponding quarter of the previous year, with all businesses registering improved performance. Profit before exceptional items and tax at Rs 33.7 cr represents 64% growth over the corresponding period of last year.

Consequent to the shareholders approval through postal ballot on 21 December 2005, the Rubber Chemicals business of the Company was transferred to a joint venture company with effect from 28 December 2005. Exceptional items during the quarter include pre-tax loss of Rs 10.1 cr on this account. The Tax charge for the quarter at Rs 14.8 cr is substantially higher mainly on account of the tax adjustments relating to the transfer of Rubber chemicals business and is not comparable
with the corresponding quarter of previous year.

Taking into account the above exceptional and tax charges, Profit after tax for the quarter at Rs 8.3 cr is not comparable with the corresponding period of last year.

Business Segments

Paints: Sales continued to grow ahead of market in the key brands, with the overall sales reaching Rs 195 cr, a growth of 18% over the same period last year. Segment profit for the quarter at Rs 20.2 cr (previous year Rs 12.6 cr) was achieved through higher volumes and control on costs.

Chemicals: The continuing businesses registered a sales turnover of Rs 67 cr, a growth of 10%. Segment profit at Rs 10.5 cr, however, represents a growth of 32% compared to the same period last year, due to better product mix and control on costs.


NINE MONTHS : APRIL - DECEMBER 2005
Sales and Profit before exceptional items and tax maintained their growth trends, registering a growth of 20% and 40% respectively over the previous year with contributions from all the businesses. However, PAT of Rs 39.5 cr is not comparable with the previous years' Rs 48.2 cr mainly on account of exceptional loss on transfer of Rubber Chemicals business, tax adjustments relating thereto and a tax write back of Rs 10.5 cr in the previous year.

For further information:

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