The turnover of E.I.D. - Parry (India) Limited for the quarter ended 30th June, 2006 was Rs.176.16 Crore (Rs.114.68 crore excluding Rs 62.99 crore of Parryware division). The operational Gross Profit was Rs. 28.69 crore (Rs. 15.65 crore excluding Rs 9.63 crore of Parryware division). During the period the other income was Rs 123.76 crore which includes Rs 118.12 crore being profit on sale of shares of Parryware Glamourooms Private Ltd., after absorbing interest cost of Rs. 0.08 crore (Rs. 1.87 crore) and depreciation of Rs. 7.23 crore (Rs. 5.89 crore excluding Rs 1.49 crore of Parryware division), the Profit before Tax for the period was Rs. 139.50 crore (Rs.16.03 Crore). Current tax provision absorbed Rs.28.68 crore (Rs.2.50crore), including capital gain tax of Rs 26.40 crore, Deferred tax Rs.2.38 crore (Rs.1.50 crore) and Fringe Benefit tax Rs.0.14 crore (0.30 crore). The Net Profit for the current quarter was Rs.108.30 crore (Rs.11.73 crore)

With effect from 1st June, 2006, the joint venture for Parryware business has been in place with EID Parry and Roca being equal partners. EID Parry divested a part of the shareholding of Parryware Glamourooms Private Ltd., in favour of Roca which has resulted in a one time profit of Rs 118.12 crore.

The Board has therefore recommended a special interim dividend of 225% for the year ending 31st March, 2007. 

Sugar Division
During the quarter, the company crushed 10.76 lakh tonnes of cane compared to 4.90 lakh tonnes in the corresponding period of 2005-06. The overall production of sugar was 95913 MT (including 1419MT from raw sugar). The average sugar realization per Mt for the quarter improved significantly to Rs 18228 from Rs 15509 in 2005-06. The company also exported 431 lakh units to the TNEB Grid compared to 205 lakh units in 2005-06.The sugar division reported a top line growth of about 57% as compared to the corresponding quarter of previous year. 

Bio-products division 
Global Bio-pesticide industry continues to see favourable market conditions on account of growth in niche markets, withdrawal / restriction of some chemical pesticides and increased adoption of Integrated Pest Management approaches.

While the first quarter sales are 20% lower than previous year, the business is looking at a favorable market conditions in both domestic and overseas markets in the coming months. In the domestic segment, kharif season is expected to be normal in our addressable markets. In the export segment, the division continues to pursue registration in some key markets around the work.

Interest
Cash realized on sale of Parryware business and receipt of sale proceeds from Roca for the divestment of shareholding in Parryware business in their favour supplemented with higher sales during the first quarter, resulted in interest cost being close to nil. 

Projects:
The Cogeneration power project at Pugalur and the acquisition of the assets of New Horizon Sugar Mills Limited, Pondicherry are progressing well.

About Us
Murugappa Group, a USD 1.5 Billion conglomerate, is one of India’s largest family-promoted, professionally managed corporate with over 28,000 employees. A pioneer and market leader in several fields with over 40 manufacturing operations across 12 states in India, the group has a strong presence in farm inputs, engineering and cycles, sugar, abrasives, finance, general insurance, sanitaryware, plantations, bio-products and nutraceuticals.

For further information, please contact:

D. Kumaraswamy, Chief Financial Officer
E.I.D.- Parry (India) Limited, 
Dare House, 234 NSC Bose Road, Chennai – 600 001:
Tel: +44 – 2534 0723
Email: KumaraswamyD@parry.murugappa.com
Website: www.eidparry.com