Coromandel Fertilisers Limited financial results

Chennai, 23 January 2008: The unaudited financial results of the company for the nine months ended December 31, 2007 were approved by the Board of Directors at its meeting held on January 22, 2008.

The Hon'ble High Court of Andhra Pradesh has approved the Scheme of Amalgamation of M/s Godavari Fertilisers And Chemicals Limited (GFCL) with Coromandel Fertilisers Limited. As such the financial results for the quarter ended December 31, 2007 includes those of GFCL and hence are not comparable with the previous period.

Sales turnover of the Company on a merged basis during this period is Rs.3172.92 crore as against Rs. 1629.02 crore (only CFL on Standalone basis) in the corresponding period last year.

The gross profit before depreciation, interest and taxes for the nine months period is Rs.412.09 crore against Rs.183.29 crore during the same period last year. Depreciation provided is Rs.40.34 crore (corresponding period last year Rs. 29.05 crore), interest charged Rs.51.51 crore (Corresponding period last year Rs.22.44 crore). Profit before tax is Rs.320.24 crore against Rs 131.80 crore for the corresponding period of last year.

Net Provision for taxation (including Fringe Benefit Tax) for the period works out to Rs.113.84 crore (net of deferred tax credit) (Corresponding period last year being Rs.47.82 crore). The net profit is Rs.206.40 crore as against Rs. 83.98 crore during the corresponding period last year.

The improvement in profitability is attributable to the various initiatives taken in the manufacturing, distribution and sales fronts resulting in higher contribution and increase in subsidy compensation for freight cost.

The Board of Directors also approved a proposal for expanding its Rural Retail Business.

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 January 22, 2008 is attached.

About Coromandel Fertilisers
Coromandel Fertilisers Limited, is a constituent of Murugappa Group which has a turnover of over USD 2.0 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.

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, sanitary-ware, cycles, sugar, farm inputs, fertilisers, plantations, bio-products and nutraceuticals, its 29 registered companies have manufacturing facilities spread across 14 states in India. The organization fosters an environment of professionalism and has a workforce of over 30,000 employees.

The Group has forged strong joint venture alliances with leading international companies like Roca, Cargill, 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 information, please contact:
P Nagarajan
Chief Financial Officer
Coromandel Fertilisers Ltd.,
Tel: 040- 27844118 / 098480 24311
Email: nagarajp@cfl.murugappa.com

Chandrika Raman
Asst. General Manager
Group Corporate Communications
Murugappa Group
Tel: 25306535 / 98400 71172
Email: chandrikaR@corp.murugappa.com

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