Gurgaon, 26 October, 2004
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 Nitrocellulose
and Trading Businesses in March 2004, difference in phasing for income
from investment, income tax write-back in the current year and non recurring
exceptional charges in the corresponding quarter last year.
QUARTER: July - September 2004
Sales from the continuing businesses grew 22% while the operating profit
recorded a growth of 55% compared to the corresponding period last year.
This, together with higher investment income of Rs 4 cr resulted in total
income of Rs 196 cr and gross profit from operations of Rs 26.1 cr against
Rs 180 cr and Rs 22.4 cr respectively in the corresponding quarter last
year. Depreciation for the quarter at Rs 5.1 cr is lower due to asset
impairment recognized in the June quarter.
With no major exceptional items during the quarter (as against previous
year's charge of Rs 5.2 cr) and benefit of tax write back of Rs 10 cr
following the investment made in Capital Gains Bonds during this quarter,
the PAT for the quarter was Rs 22.9 cr as against Rs 6.8 cr during the
same period last year.
Business Segments
Paints: Net sales for the quarter at Rs 140 cr grew well
ahead of the market. Profit for the quarter at Rs 8.8 cr (previous year
Rs 7.2 cr) was achieved through higher volumes and improved mix, partly
offset by increase in input costs.
Chemicals: During this quarter, Chemicals sales at Rs
77 cr grew by 19% and profit by 55% over the corresponding period of the
previous year. Uniqema and National Starch posted a strong growth. Rubber
Chemicals business, despite strong exports performance, remained under
pressure due to continuing weak selling price and increase in input costs.
Half year April- September 2004
Sales and operating profit from the continuing businesses grew by 23%
and 54% respectively, mainly due to robust growth in the company's core
businesses and lower depreciation charge as explained above. These, together
with favourable variance in exceptional items and Tax write back, resulted
in PAT for half year April-September 2004 of Rs 35.6 cr as against Rs
14.5 cr over the corresponding period last year.
For further information:
R Guha
Tel: +91 124 2540810
Fax: +91 124 2540839
E mail:
r_guha@ici.com