Coromandel Fertilisers Q1 results

Chennai, 25th July 2007: The unaudited financial results for the first quarter ended June 30, 2007 were approved by the Board of Directors at its meeting held on July 24, 2007.

Sales turnover during this period was Rs 251.66 crore, as against Rs. 371.96 crore in the corresponding period last year.

The gross profit before depreciation, interest and taxes for the three months period is Rs.44.70 crore as against Rs.36.33 crore during the same period last year, registering a growth of 23%; depreciation provided is Rs.9.80 crore (corresponding period last year Rs.9.51 crore), interest charged Rs.11.38 crore (Corresponding period last year Rs.8.05 crore). Profit before tax has gone up by 25.31% to Rs.23.52 crore as compared to Rs.18.77 crore in the corresponding period last year.

Provision for taxation (including Fringe Benefit Tax) for the period works out to Rs.10.55 crore (net of deferred tax credit) (Corresponding period last year Rs.7.17 crore). The net profit is Rs.12.97 crore as against Rs.11.60 crore during the corresponding period last year, representing an increase of 11.81% over the previous year.

Fertiliser Business being seasonal in nature and the first quarter being off-season period, the results are not indicative of the overall performance of the Company, for the year.

During the quarter, the Board allotted 831981 equity shares to the shareholders of M/s Ficom Organics Limited pursuant to a Scheme of Amalgamation approved by the Hon'ble High Court of Andhra Pradesh and Bombay.

The Board of Directors at the meeting approved a Scheme of Amalgamation of M/s Godavari Fertilisers And Chemicals Limited (GFCL) with Coromandel Fertilisers Limited. As per the scheme approved by the Board , the Shareholders of GFCL will be entitled to receive 3 (three) equity shares of Rs. 2/- each of CFL for every 2 (two) equity shares of Rs 10/- each held by them in GFCL. This consolidation is expected to help both the Companies to leverage the synergy benefits in the areas of marketing , raw material procurement and expanded product range and markets. With the combined capacities of over 2.5 million tons of phosphatic fertilisers, the merged entity will be one of the leading players in this segment.

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 July 24,2007 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 organization 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.