Gurgaon, 30 May 2003

FINANCIAL RESULTS

The results for the quarter and fiscal year are not comparable with those of the corresponding periods of the previous year in view of the business portfolio changes in both the years.

Quarter - January-March 2003

Sales and operating profit from continuing businesses grew by 8% and 46% respectively compared to the corresponding period last year. On a total basis, sales of Rs 133 crores and operating profit of Rs 17.9 crores were similar to that of last year despite the disposal of Synetix business. PAT at Rs 14.6 cr is lower compared to the corresponding period last year as exceptional income in the last year included profit from divestment of Pharmaceuticals business.

BUSINESS SEGMENTS

Paints: Paints sales grew by 12% during the quarter with good performance in premium Dulux and 2K brands. Higher volumes, better product mix and lower fixed costs substantially improved the business performance compared to the corresponding period of last year.

Industrial Specialties: National Starch’s sales and profits increased during the quarter with improved market share in key segments. Uniqema sales reflect a better performance in textile and personal care sector but profit was lower because of increase in prices of key raw materials.

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 and higher prices of key raw materials. The segment result is not comparable with the corresponding period last year due to divestment of Synetix.

FISCAL YEAR - 2002-03

The Company achieved a record PAT of Rs 107.7 cr, 34% higher than last year, due to improved performance in the continuing businesses and higher exceptional income mainly due to divestment of Synetix business. Continuing business sales grew by 9% over last year whilst the operating profit recorded a good growth of 49%.

On a total basis, gross sales at Rs 715 cr were only marginally behind last year’s sales despite the divestment of Synetix business. Operating profit at Rs 87 cr grew 17%.

Dividends

Taking into account the high level of exceptional income during the year, the Board has recommended, as a special case, a dividend of Rs 10 per share (100%). The dividend for the year will be paid after the approval of the shareholders at the AGM scheduled in July 2003.

For further information:

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