E.ID. Parry (India) Limited: Audited Financial results for the year ended March 31,2004
May 31, 2004

Restructuring
In order to focus on core businesses of sugar, sanitaryware and bio products, the Company undertook a major restructuring exercise viz., demerger of Farm Inputs Division to Coromandel Fertilisers Ltd (CFL) and amalgamation of Parry & Company Limited (P&Co) and The Mofussil Warehouse and Trading Company Limited (MWT) with effect from 1st April 2003. Hence the financials for 2003-04 are not comparable with the previous year.

Financial Performance
The turnover of E.I.D.- Parry (India) Limited for the year ended 31st March, 2004 stood at Rs.641 crore (Rs.1376 ccrore). The profit before tax for the year after absorbing interest cost of Rs.7.53 crore (Rs.32.82 crore) and depreciation of Rs.30.37 crore (Rs.45.02 crore) was Rs.53.29 crore (Rs.37.03 crore). After providing for the current tax of Rs.6.90 crore (Rs.3.00 crore) and deferred tax of Rs.3.16 crore (Rs.7.20 crore), the Profit after Tax for the current year at Rs.43.23 crore as against Rs.26.83 crore in the previous year.

The Board of Directors have recommended a Dividend of 75 per cent on Equity Shares (Rs. 7.50 per Equity Share).

Despite drought conditions prevalent in Tamil Nadu and cane crushing is lower in all the four sugar factories, the year’s results were better due to cost reduction measures adopted and improvement in selling price of sugar.

Parryware with a market share of 38% in the organised sector grew by 12% over the previous year. “Parryware” continues to enjoy its leadership position in the market, in terms of volume and value. Strong consumer preference, sustained performance and achievement of “Superbrand” status enabled the sanitaryware division to register reasonable topline and bottomline.

The Company’s Bio Products division turned positive, enabled by the significant growth and acceptance of Neemazal, a neem based pesticide in over 23 countries, especially Europe, USA, North and Central America.

The borrowing level has come down substantially due to repayment of long term loans, transfer of debt to CFL on restructuring and reduction in working capital. By taking advantage of softening interest rates by accessing funds through various instruments such as dollar denominated ECB, FCNR(B) loans, MIBOR linked loans, Buyers credit, PCFC for exports and short term rupee borrowings the interest has been reduced to Rs.7.53 crore from Rs.32.82 crore.

The Company alongwith its subsidiary viz., Santhanalakshmi Investments Pvt Ltd held 43.61 per cent in Parrys Confectionery Ltd’s equity, which was divested in favour of M/s. Lotte Confectionery Limited, Korea at Rs.283.12 per share. The sale was effected on 24th May 2004.

The Company has also decided to divest other non-core businesses of Netlon, General Marketing and Travels in favour of M/s.Parry Engineering and Exports Ltd for Rs.12.25 crore. The Company has obtained the approval of the shareholders for the same on 25th May 2004.

For further details please contact:
Mr. D. Kumaraswamy
Tel: (+91 44) 2534 0723

E.I.D.- Parry (India) Limited is part of the Rs. 5200 crore Murugappa Group. A pioneer and market leader in several fields with manufacturing facilities across 12 states, Murugappa Group has strong presence in Abrasives, Engineering, Bio-Products, Sanitaryware, Sugar, Farm Inputs, Financial Services, General Insurance, Plantations and Nutraceuticals.