Coromandel Fertilisers announces financial results for the half-year ended September 30, 2005

October 18, 2005: The unaudited financial results for the half-year ended September 30, 2005 were approved by the Board of Directors at its meeting held on October 18, 2005.

Sales turnover during this period is Rs.828.57 crore, as against Rs.677.33 crore in the corresponding period last year, representing an increase of 22 per cent.

The gross profit before depreciation, interest and taxes for the half-year is Rs.92.16 crore as against Rs.76.13 crore during the same period last year, showing an improvement of 21 per cent; depreciation provided is Rs.18.14 crore (previous half-year Rs.16.90 crore), interest charged Rs.10.96 crore (Previous half year Rs.10.53 crore). Profit before tax has gone up by 29 per cent to Rs.63.06 crore (Previous half year : Rs. 48.70 crore)

Provision for taxation (including Fringe Benefit Tax) is Rs.14.57 crore (net of deferred tax credit) (previous half-year Rs.9.37 crore) (net of excess provision for taxation reversed). The net profit is Rs.48.49 crore as against Rs.39.33 crore during the corresponding period last year, representing an increase of 23 per cent over the previous year.

The improvement in profitability has been achieved, thanks to higher sales volumes, improved productivity and various initiatives taken on the manufacturing, distribution and sales front.

The monsoon during the season was normal in most parts of the addressable markets resulting in increased turnover and profitability.

The Board of Directors also approved the sub-division of the Equity shares of Rs 10/- each to Five Shares of Rs 2/- each and seek the approval of Members through Postal Ballot.

A copy of the advice to the Stock Exchanges giving the highlights of the unaudited financial results approved by the Board of Directors of the Company on October 18, 2005 is attached.

Coromandel Fertilisers Limited, is a constituent of Murugappa Group which has a turnover of US $ 1.5 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.

M R Rajaram
Company Secretary