Coromandel Fertilisers Limited financial results

Chennai, October 23, 2007: The unaudited financial results for the quarter/half-year ended September 30, 2007 were approved by the Board of Directors at its meeting held on October 23, 2007.

Sales turnover during this period is Rs.1166.84 crore, as against Rs. 1120.38 crore in the corresponding period last year.

The gross profit before depreciation, interest and taxes for the half-year is Rs.160.72 crore as against Rs.133.16 crore during the same period last year; depreciation provided is Rs.19.84 crore (previous half-year Rs.19.28 crore), interest charged Rs.20.53 crore (Previous half year Rs. 14.83 crore). Profit before tax has gone up by 21.5 per cent to Rs.120.35 crore (Previous half year: Rs.99.05 crore)

Provision for taxation (including Fringe Benefit Tax) is Rs.41.11 crore (previous half-year Rs.35.98 crore). The net profit is Rs.79.24 crore as against Rs.63.07 crore during the corresponding period last year, representing an increase of 25.6% over the previous year.

The improvement in profitability has been achieved, thanks to various initiatives taken in manufacture, distribution and sales fronts resulting in higher contributions and increase in subsidy compensation for freight cost.

The Scheme of Amalgamation of M/s Godavari Fertilisers And Chemicals Limited (GFCL) with Coromandel Fertilisers Limited (CFL) which has earlier been approved by the Board of Directors at the meeting held on July 24, 2007, has since been approved by the Shareholders and the Unsecured Creditors of the Company. The Company Petition has been filed in the High Court seeking approval for the Amalgamation.

The Company, pursuant to amendment of the Objects Clause of the Memorandum of Association, commenced Retail Business to cater to the needs of farmers, the Company’s customer.

The consolidated results for the half year ended September 30, 2007 (including the results of GFCL, a subsidiary of CFL) also shows an increase in Net Profit from Rs.76.02 crore in the corresponding period of the previous year to Rs.115.81 crore, increase of 52.3 per cent.

A copy of the advice to the Stock Exchanges giving the highlights of the un-audited financial results approved by the Board of Directors of the Company on October 23, 2007 is attached.

About the Murugappa Group
Headquartered in Chennai, the USD $2 billion (Rs.8500 crore) Murugappa Group is India's leading business conglomerate. Market leaders in diverse areas of business including engineering, abrasives, finance, general insurance, sanitaryware, cycles, sugar, farm inputs, fertilizers, plantations, bio-products and nutraceuticals, its 29 registered companies have manufacturing facilities spread across 12 states in India. The organisation fosters an environment of professionalism and has a workforce of over 28,000 employees.

The Group has forged strong joint venture alliances with leading international companies like Roca, Cargill, Cerdak, DBS Bank, Mitsui Sumitomo and Groupe Chimique Tunisien and has consolidated its status as one of the fastest growing diversified business houses in India.

For further details, please contact:

P Nagarajan / Chandrika Raman
Chief Financial Officer, Asst. General Manager - Group Corporate Communications
Murugappa Group
Ph - 044 27844118 / 098480 24311 Ph – 25306535
Mob: 098400 71172
ChandrikaR@corp.murugappa.com
nagarajp@cfl.murugappa.com