Chennai, 17 October, 2006: The Board of Directors of Godavari Fertilisers and Chemicals Limited (GFCL) has approved un-audited financial results for the half-year ended 30th September 2006, at their meeting held today.

GFCL has reported improved performance during the first half year of 2006-07. Turnover touched Rs.995 crore [previous year: Rs.727 crore], representing an increase of 37 per cent. Profit Before Tax has more than doubled to Rs.45.55 crore, as compared to Rs.20.92 crore during the same period last year, despite a steep increase in finance costs. The Profit After Tax [PAT] is Rs.29.19 crore, after providing for depreciation of Rs.3.28 crore and interest charges of Rs.15.74 crore [previous year: Rs.4.31 crore and Rs.7.67 crore, respectively], an increase of 136 per cent. Provision for taxation has increased to Rs.16.36 crore [previous year: Rs.8.58 crore]. Both PBT and PAT for the six month period have exceeded full year figures of 2005-06 and are the all time high since inception of the Company.

GFCL achieved an all time best performance for 6 months in terms of production of 5.78 lakh tonnes and sales of 5.97 lakh tonnes. It has also improved its market share in its primary market zone, helped by a good monsoon, which has also improved prospects for the rabi season.

With higher productivity, efficiency of conversion has gone up significantly. Fixed Costs have been tightly controlled.

The Board of Directors of GFCL has approved an installation of a third granulation plant to enhance the production capacity at Kakinada by 4.25 lakh tonnes per annum, at an approximate cost of Rs.82.50 crore. The project is expected to go on stream by early 2009.

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 house in India.

Contact Information

K A Nair
Managing Director
GFCL
Tel: 040- 27704219 / 099494 31949
Email: NairKA@gfcl.murugappa.com

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