Coromandel Fertilisers Limited announces results for FY 2004-05

Chennai, April 26, 2005: The Board of Coromandel Fertilisers Limited approved the audited financial results for the year ended March 31,2005. During the year the company achieved a turnover of Rs.1554.17 crore (Previous year : Rs 1222.59 crore) registering a growth of 27 per cent over previous year. The profit before depreciation, interest and taxes for the year is Rs.147.99 crore showing an increase of 12 per cent over previous year (Rs.132.13 crore).

The Profit Before Tax has gone up to Rs.92.87 crore in 2004-05, from Rs.70.77 crore in 2003-04, a rise of over 31 per cent. The Net profit for the year is Rs.69.20 crore registering a growth of 60.56per cent over last year (Previous year Rs.43.10 crore). This has resulted in smart raise in EPS from Rs.16.97/share in 2003-04 to Rs.27.24/share in 2004-05 on an equity capital of Rs.25.41 crore.

The Company has achieved higher production and sales volumes during the year mainly through sweating of existing assets, strengthening of infra structural facilities, optimal product mix and improved logistics management. Despite Government's subsidy formula not fully compensating the increase in cost of inputs, the company has shown creditable performance during the year through improvements in operating efficiencies, control on distribution cost and borrowing costs. The pesticides business has shown robust growth in export of technicals and continuous focus on specialty products has significantly contributed to the bottom line.

The company could achieve significant reduction in interest cost (from Rs.28.72 crore in 2003-04 to Rs.18.73 crore in 2004-05) due to improved cash sales and substantial reduction in the borrowing cost through prudent mix of working capital borrowings and retirement of high cost debts. During the year, the Company entered into a Business Assistance Agreement (BAA) with M/s Foskor Ltd., South Africa, a leading manufacturer of Phosphoric Acid in the world. The tenure of BAA is three years during which period, the Company would be providing Technical and Managerial assistance to M/s Foskor Ltd. As part of this strategic alliance, the Company has since acquired 2.5 per cent equity stake in Foskor.

The Board of Directors recommended payment of dividend of 75 per cent as against 65 per cent paid last year.

A copy of the advice to the Stock Exchanges giving the highlights of the audited financial results for the year ended March 31, 2005 approved by the Board of Directors of the Company on April 22, 2005 is attached.

Coromandel Fertilisers Limited, is a constituent of Murugappa Group which has a turnover of over US $ 1.2 Billion, is a pioneer and market leader in several fields of business with manufacturing operations across 12 states in the Country. The Group has a strong presence in Abrasives, Engineering, Bio-products, Sanitaryware, Sugar, Fertilisers, Pesticides, Finance, General Insurance, Plantations and Nutraceuticals.

April 22, 2005

M R Rajaram
Company Secretary