CUMI sales growth by 20 per cent. Operating profit before extraordinary items by 24 per cent
The Board of Directors met today and approved the unaudited financial results for the quarter ended 31st December 2005.

January 28, 2006:
Q3 Financials
Sales grew to Rs. 109 crore from Rs. 91 crore for the corresponding quarter of the previous year, a growth of 20 per cent. Exports registered strong growth of 41 per cent, from Rs. 8 crore to Rs. 11.3 crore. Operating profit before extraordinary items increased to Rs. 21 crore (from Rs. 17 crore), a growth of 24 per cent. During the quarter, the Company sold its shareholding in Parry Agro Industries Ltd. which yielded a profit of Rs. 32 crore. As a result, profit before tax grew from Rs. 13 crore to Rs. 49 crore. After tax profit increased from Rs. 9 crore to Rs. 43 crore.

Operations
All divisions registered improved performances over the last year. Sale of abrasives grew from Rs. 71 crore to Rs. 79 crore during Q3, a growth of 11 per cent. Ceramics and Electro minerals registered strong growth of 38 per cent and 49 per cent respectively over the corresponding periods of last year. Demand pull continued to be robust from both domestic and export markets. The upgradation of manufacturing facilities at all locations and the construction of the coated abrasives facility at Sriperambudur near Chennai have made good progress during the current quarter.

Profits at the segment level showed an improvement of 7 per cent in the abrasives division, and 70 per cent in the ceramics and electro minerals divisions.

Outlook
The Company expects to maintain its performance during the last quarter and end the year on a robust note.

The unaudited financial results are enclosed.

Appointments
Mr. K. Srinivasan, who is currently President & Wholetime Director, has been elevated as Managing Director of the Company with effect from 1st February 2006 till 31st January 2010.

Carborundum Universal Ltd is part of the US $ 1.5 billion conglomerate Murugappa Group. The group is one of India's largest family promoted, professionally managed corporates with over 28,000 employees. A pioneer and market leader in several fields with over 40 manufacturing operations across 12 states in India, the Group has a strong presence in abrasives, engineering and cycles, bio-products, sanitaryware, plantations, sugar, farm inputs, finance, general insurance, and nutraceuticals.

For further details please contact:
Mr. N Srinivasan,
Chief Financial Officer
Tel: (044)42216132