Gurgaon, 24 October 2005

FINANCIAL RESULTS

QUARTER: July - September 2005

Total sales/income at Rs 260 cr reflects a 20% growth over the corresponding quarter of the previous year. All businesses continue to perform better than last year. Profit before interest and tax from businesses at Rs 22.4 cr represents 37% growth over the corresponding period of last year.

Investment income for the quarter at Rs 2.5 cr is lower than Rs 5.1 cr last year due to difference in phasing. Exceptional items include additional compensation of Rs 1 cr for a property taken over by a Government agency. Profit before Tax for the year at Rs 24.1 cr was 18% better than the corresponding period of last year. However, Profit after Tax at Rs 15.4 cr is not comparable with last year's corresponding quarter as previous year's result of Rs 22.9 cr included tax provision write back of Rs 10.5 cr.

Business Segments

Paints: Sales for the quarter at Rs 171 cr grew by 22% over the same period last year. Key brands continue to register strong growth. Improved segment Profit for the quarter at Rs 12.3 cr (previous year Rs 8.8 cr) was achieved through higher volumes, improved mix and control on costs, after absorbing the cost escalations due to high crude prices.

Chemicals: During the quarter, this segment registered sales of Rs 90 cr, a growth of 18%. Segment profit at Rs 10.1 cr represents a growth of 33% compared to the same period last year. To effectively service the growing textile market, the Company is undertaking an expansion of capacity at Thane with a capital investment of about Rs 7 cr. NSC recorded good growth with further consolidation of its competitive position in Adhesives. Rubber Chemicals achieved higher sale mainly in domestic market.

HALF YEAR: APRIL - SEPTEMBER 2005

Sales and operating profit grew by 22% and 25% over the previous year, reflecting robust growth and improved profitability in all the businesses. However, PAT of Rs 31.3 cr is lower than previous year's figure of Rs 35.6 cr mainly due to tax write back of Rs 10.5 cr in the previous year.