E.ID. PARRY (INDIA) LIMITED: Audited financial results for the year ended March 31, 2008

Chennai, 24 April 2008: The turnover of E.I.D Parry (India) Limited for the quarter ended 31st March 2008 was Rs.195.82 crore (Rs.72.49 crore). The Gross Profit for the quarter was at Rs.19.18 crore (Gross Loss Rs.4.55 crore), after absorbing depreciation of Rs.11.44 crore (Rs.8.78 crore). There was a Profit of Rs.15.50 crore before taxation (Loss Rs.3.46 crore ).The net profit for the quarter ended 31st March 2008 stood at Rs.37.90 crore (net loss of Rs.10.72 crore) after adjusting tax of Rs.22.40 crore, (Rs.7.26 crore).

For the year 2007-08
The Company achieved a gross Turnover of Rs.679.75 crore as compared to Rs.583.23 crore in 2006-07, thus registering a growth of 16 % on Y-O-Y figure.

The Earnings before Interest, Depreciation, Tax and Amortization (EBIDTA) was Rs.18.98 crore as against Rs.82.97 crore (net of one-time profit on sale of investments of RS.118.12 Crore) in 2006-07. The depreciation for the year at Rs.44.03 crore (Rs.32.87 crore). The company has incurred a net finance charges of Rs.13.45 crore for the year as compared to the net interest income of Rs.2.11 crore in 2006-07.

The Loss before interest and tax (EBIT) was Rs.25.05 crore (profit Rs.50.10 crore excluding profit on sale of investment) and the Loss after tax stood at Rs.16.58 crore (Profit After Tax Rs.127.42 crore).

The results for the previous year ended 31st March, 2007 includes operations of Nutraceuticals division for 7 months from 1st September, 2006 and hence strictly not comparable.

Dividend
The Board of Directors are pleased to recommend a dividend of Re. 0.50 per equity share (25%) on Equity Shares of Rs.2 each.

Divisional performance

Sugar
The sugar division generated a revenue of Rs.641.58 crore ( Rs.555.92 crore) during the year ended 31st March, 2008 with Loss Before interest and tax of Rs.59.58 crore as against Profit Before Interest and Tax of Rs.30.80 crore for the previous year. The PBIT was less mainly due to the depressed selling price of sugar throughout the year.

The projects to increase throughputs in the sugar units are progressing well and the total crushing capacity is getting increased to 19,000 TCD by the year end.

A 20 MW cogeneration plant is currently under construction in Pettavaittalai.

Bio-Pesticides
The Bio Pesticides division of the Company has emerged as a global leader in the Neem based bio-pesticide business and continues to focus on its core product - the NEEMAZAL? range of products.

Export Sales and Revenues registered a growth over the previous year, with America and Europe continuing to be the major markets. The division has earned a revenue of Rs.31 crore for the year (Rs.26 crore) and earnings before interest and tax of Rs.5.91 crore (Rs.2.92 crore).

Nutraceuticals
The Nutraceuticals division registered a revenue of Rs.17 crore (Rs.11 crore for the 7 months period ended 31st March 2007). The earnings before interest and tax was Rs.1.37 crore (Rs.1.30 crore).The products of this business continued to grow in all the markets.

Parryware joint venture
The Board of Directors approved sale of 47% shareholding in Parryware Roca Private Limited, a 50:50 Joint Venture with Roca Sanitario S.A. (Roca)

Subject to various approvals including FIPB, the shares would be sold to Roca Bathroom Investments S.L. or any other affiliate of Roca for Euro 111,149,111.

About us
E.I.D Parry (India) Limited is a part of 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 14 states in India. The organisation 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 Gopalakrishnan
Vice President (Finance)
E I D Parry (India) Limited
Tel: 044 2530 6427
gopalakrishnan@parry.murugappa.com

Chandrika Raman
Asst General Manager
Group Corporate Communications - Murugappa group
Tel: 044 2530 6535 / 98400 71172
chandrikaR@corp.murugappa.com

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