Chennai, 17 October, 2006: The unaudited financial results for the half-year ended September 30, 2006 were approved by the Board of Directors at its meeting held on October 17, 2006.

Sales turnover during this period is Rs.1087.52 crore, as against Rs. 828.57crore in the corresponding period last year, representing an increase of 31.2 per cent.

The gross profit before depreciation, interest and taxes for the half-year is Rs.132.57 crore as against Rs.92.16 crore during the same period last year, showing an improvement of 43.8 per cent; depreciation provided is Rs.17.95 crore (previous half-year Rs.18.14 crore), interest charged Rs.14.26 crore (Previous half year Rs. 10.96 crore). Profit before tax has gone up by 59.2 per cent to Rs.100.36 crore (Previous half year : Rs.63.06 crore)

Provision for taxation (including Fringe Benefit Tax) is Rs.35.97 crore (net of deferred tax credit of Rs.1.59 crore) (previous half-year Rs.14.57 crore which was net of deferred tax credit of Rs.8.43 crore). The net profit is Rs.64.39 crore as against Rs.48.49 crore during the corresponding period last year, representing an increase of 32.8 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 Company achieved highest production and sales of Complex Fertilisers during the period.

The Board of Directors of the Company approved a Scheme of Amalgamation of M/s Ficom Organics Limited (Ficom) and its wholly owned subsidiary, M/s Rasilah Investments Limited with Coromandel Fertilisers Limited (CFL) and approved a swap of ratio of 3 (three) Equity Shares of CFL for every 11 (eleven) Equity Shares of Ficom. This Amalgamation will enable the Company to consolidate the Pesticides business and reap the synergy benefits from the consolidation.

The Board also approved convening an Extraordinary General Meeting on November 17, 2006 to seek approval of the Members for enabling the Directors to raise funds either through issue of Equity/Equity Linked Securities upto Rs.230 crore or its equivalent in any other currency. This fund raising proposal is to enable the Company to finance the future expansion plans/new projects/acquisitions and long-term working capital requirements.

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 17, 2006 is attached.

About Murugappa Group
Headquartered in Chennai, the $1.6 billion Murugappa Group is India's leading business conglomerate, which fosters an environment of professionalism for its strong workforce of 28,000 employees. The group has 29 registered companies which are market leaders in diverse areas on business viz. engineering, abrasives, finance, general insurance, sanitary ware, cycles, sugar, farm inputs, fertilizers, plantations, bio products and nutraceuticals. The Group has manufacturing units in 12 states.

The Group has forged strong joint venture alliances with leading international companies like Roca of Spain, Cargill of Geneva, Cerdak of South Africa, Jingri Diamond Industrial Company of China, DBS Bank of Singapore, Mitsui Sumitomo of Japan and Groupe Chimique Tunisien of Tunisia and has consolidated its status as one of the fastest growing diversified business houses in India.

Contact Information

P Nagarajan
Chief Financial Officer
Coromandel Fertilisers Ltd.
Tel: 040- 27844118 / 098480 24311
Email: nagarajp@cfl.murugappa.com

Chandrika Raman
Sr. Manager - Group Corporate Communications
Murugappa group
Tel: 25306535 / 98400 71172
Email: ChandrikaR@corp.murugappa.com