FINANCIAL RESULTS

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

QUARTER - April - June 2003

Sales and operating profit from the continuing businesses grew by 12% and 10% respectively compared to the corresponding period last year on the back of strong growth in Paints and National Starch. However, due to divestment of Synetix, the total sales growth was only 1% and overall PBT at Rs 11.6 crores and PAT at Rs 7.7 crore were lower than the corresponding figures last year.

Business Segments

Paints: Paints sales grew well ahead of the market during the quarter with good performance in premium Dulux and 2K brands. This resulted in a profit before interest and tax of Rs 358 lacs against Rs 115 lacs in the corresponding period last year.

Industrial Specialties: National Starch sales and profits continued to grow with higher volumes and improved margins. Uniqema sales were at the same level as last year due to late onset of monsoons in certain parts of the country and the confusion in the textile industry following the changes in the excise duty structure.

Industrial Chemicals: Nitrocellulose achieved strong growth in sales during the quarter with higher export sales. Rubber Chemicals business continued to be affected by lower sales realizations due to weak global prices and depreciation of dollar. This together with higher prices of certain key raw materials affected the profitability. The segment result is not comparable with the corresponding period last year due to divestment of Synetix.

BOARD CHANGES

In today's meeting, the Board has reluctantly accepted the resignation of Mr D S Parekh as a Director of the Company with effect from 1 August 2003. The Board wishes to place on record its appreciation and thanks for the valuable contribution made by Mr D S Parekh over the last six years.

In the same meeting, the Board has appointed Ms R S Karnad as a Director with effect from 1 August 2003 in the casual vacancy caused by the resignation of Mr D S Parekh.

Kolkata
30 July, 2003

For further information:

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