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 July – September 2003

Sales and operating profit from the continuing businesses grew by 12% and 20% respectively compared to the corresponding period last year with strong growth in Paints, National Starch and Nitrocellulose. Total sales during the quarter were higher by 2%. However the divestment of Synetix business together with an adverse variance of Rs 11 crores in exceptional items resulted in lower PBT at Rs 10.9 crores and PAT at Rs 6.8 crores.

Business Segments

Paints: Paints sales grew ahead of the market with good performance in key brands. This together with control on cost resulted in segment profit of Rs 723 lacs against Rs 407 lacs in the corresponding period last year.

Industrial Specialties: : National Starch sales and profits continued to grow with higher volumes and introduction of new products. Though overall sales of Uniqema were marginally lower than last year, profits were better due to improved sales mix and control on costs.

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 impacting domestic sales and depreciation of dollar impacting exports. 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.

HALF YEAR April – September 2003

Sales and operating profit from continuing businesses for the half year have grown by 12% and 15% respectively. However, PBT at Rs 22.5 Crores and PAT at Rs 14.5 crores were lower than the corresponding figures last year due to divestment of Synetix business in Q 3, 2002-03 and exceptional charges of Rs 5.2 crores (mainly restructuring expenses in Uniqema business) against an exceptional profit of Rs 5 crores last year from sale of property.

Gurgaon
30 October, 2003

For further information:

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