FINANCIALS

For the Quarter January 06 – March 06

The income from operations of E.I.D.- Parry (India) Limited for the quarter ended 31st March 2006 grew by about 23% and stood at Rs.357.71 crores (as against Rs.291.92 crores). The Profit before Tax for the quarter rose by about 11% at Rs.48.81 crores after absorbing interest cost of Rs.0.92 crores and depreciation of Rs.6.79 crores. The net Profit for the quarter ended 31st March 2006 after absorbing current tax of Rs.14.40 crore, Deferred tax of (Rs.9.60 crores) fringe benefit tax of Rs.0.33 crores showed a healthy growth of about 20% and stood at Rs.43.68 crores (as against Rs.36.54 crores for the corresponding quarter).

For the year 2005-06

The Company achieved the highest turnover since the demerger of its farm inputs division in 2003 and the gross turnover increased by 28% from Rs.765.56 crores in 2004-05 to Rs.978.46 crores for the year ended 31st March, 2006. The earnings before interest, depreciation, tax and amortization of expenses surged to Rs.177.66 crores and showed a growth of 12% over the previous year. The Company achieved an earning before interest and tax of Rs.148.51 crores, up by 14% over 2004-05 (Rs.130.76 crores). After providing for interest cost of Rs.7.39 crores (Rs.3.50 crores), the profit before tax grew by 11% to Rs.141.12 crores (Rs.127.26 crores). The rise in interest cost was due to increase in the cost of working capital borrowings in current year and also due to withdrawal of buffer stock interest subsidy scheme. The current year income includes profit after tax of Parryware Division for a period of 11 months.

After providing for the current tax of Rs.26.50 crores (Rs.20.46 crores), deferred tax of (Rs. 2.75 crores) (Rs. 2.54 crores) and fringe benefit tax of Rs.1.53 crores, the Profit after Tax for the current year at Rs.115.84 crores was higher by 11 % as against Rs.104.26 crores in the previous year. 

DIVIDEND
The Board of Directors are pleased to recommend a Dividend of 225% (Rs 4.50 per equity share) on Equity Shares of Rs. 2 each. This includes a one time dividend of 90% (Rs 1.80 per Equity Share).

DIVISIONAL PERFORMANCE

SUGAR 
The sugar division generated a revenue of Rs.729 crores during the year ended 31st March, 2006 with earnings before interest and tax of Rs. 80 crores as against Rs. 70 crore for the corresponding period showing a growth of about 14%.

The 18 MW cogeneration power plant at Pudukottai commenced commercial operations in March, 2006. With the expansion of capacity of sugar at Pudukottai the total cane crushing capacity stands at 14500 MT. 

Consequent to various restructuring initiatives, EID Parry is now a sugar focused company. It had recently announced large investments of about Rs.850 crores towards expansion of the existing sugar plants and making these into fully integrated units by value-adding Power Cogeneration and Distilleries to convert all the molasses into Alcohols. Acquisitions as well as establishment of Greenfield plants are also on the cards.

The company intends to enter into a joint venture with Cargill International, a leading global sugar major to set up a stand-alone sugar refinery. EID Parry will hold 51% and Cargill 49% in the joint venture. The investment is estimated at Rs.325 crores (about USD 72 million). The plant is expected to be commissioned by December 2007. Parrys Sugars Refineries Pvt. Ltd. will be vehicle for the proposed joint venture. This company will receive Rs.72.5 crore as initial equity from EID Parry. 

PARRYWARE
With the objective of registering significant growth of Parryware business through better technology, improved manufacturing practices, better product offering, increased presence in international market and improve the overall business value, EID Parry decided to partner with ROCA of Spain who are world leaders in the bathroom products for a 50:50 joint venture for the Parryware Business. To facilitate this, the Parryware business was transferred on a slump sale basis to Parryware Glamourooms Private Limited, a wholly owned subsidiary of E.I.D Parry on 1st March 2006. Hence the operating results reported for Parryware Division represents 11 months period ended 28th February, 2006.

The Market Share in Sanitaryware (Organised sector) improved from 40% to 42%, with the launch of 12 new products across all categories. Parryware focused on the emerging retail trend by investing in large scale branding and display across the country. The institutional business recorded an impressive win across the country from key builders. The revenue of sanitaryware division clocked a robust 29% ahead of the market and stood at Rs.232.48 crores as against Rs.195.96 crores during the previous year and the profit before interest and tax rose to Rs.29.62 crores as against Rs.23.04 crores during the previous year.

BIO-PRODUCTS
The products of this division continued to grow in all the markets serviced by it. Sales in the domestic market grew by 13% , with Channel sales recording a growth of over 110%. The NEEMAZAL â range of formulations continued to be used in tea, coconut, etc. and during the year Rice has emerged as a significant focus crop. With the launch of AbdA, an organic Plant Vitaliser, the company is now able to offer total crop protection solution for Rice.

The division recorded sales of Rs.25.66 crores against Rs.20.26 crores for the previous year and reported a Profit before Interest and Tax of Rs.4.21 crores for the year ended 31st March 2006 as against Rs.3.89 crores for the corresponding period showing a growth of about 8 %.

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