Gurgaon, 31 January 2003

FINANCIAL RESULTS

The results for the quarter and nine months of April-December 2002 are not comparable with those of the corresponding periods of the previous year in view of the business disposals and acquisitions.

Quarter - October-December 2002

Continuing businesses' sales grew by 7% and operating profits by 13% compared to the corresponding period last year. However, total sales of Rs 189 crores and operating profit of Rs 21.3 crores were lower by 2% and 8% respectively consequent to business disposals.

Exceptional items include profit from sale of Synetix business of Rs 82.80 crores, corporate restructuring charge of Rs 6 crores and a provisional charge of Rs 8 crores towards additional contribution to retiral funds due to declining interest rates. Because of higher exceptional income, profit after tax of Rs 65.2 crores is substantially higher compared to the corresponding period last year.

Nine Months - April -December 2002

Net sales and operating profit from continuing businesses have grown by 10% and 49% respectively. Profit before tax of Rs 121.1 crores and profit after tax of Rs. 93.1 crores were more than double of the performance in the corresponding period last year because of higher exceptional income during the year.

BUSINESS SEGMENTS

Paints: Paints grew ahead of market with both Decorative and Refinish segments showing strong performance of the premium brands. The business turned in improved profits because of higher volumes with better mix leading to increase in margins.

Industrial Specialties: National Starch's Adhesives sales and profits more than doubled during the quarter with successful integration of the business acquired last year from HLL. Uniqema's performance was affected by lower sales in Agro Chemicals sector because of poor monsoon and competition despite good growth in Textile and Polymer Cleaning sectors.

Industrial Chemicals: Nitrocellulose achieved good growth in sales during the quarter on account of higher exports and domestic sales and together with cost savings translated to an improved profit for the business. Rubber Chemicals, however, continued to be hampered by lower sales realizations and higher prices of key raw materials. The results reflect Synetix business performance upto 31st October 2002 only since the commercial risk passed on to the buyer from 1st November 2002.

For further information:

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