Unaudited Financial Results (Provisional)
for the quarter ended 30/09/2007

Sl.No Particulars Stand-alone Results Consolidated Results
Unaudited Audited Unaudited Audited
Quarter ended Half year ended Year ended Quarter ended Half year ended Year ended
September 30, 2007 September 30, 2006 September 30, 2007 September 30, 2006 March 31, 2007 September 30, 2007 September 30, 2006 September 30, 2007 September 30, 2006 March 31, 2007
(I) (II) (III) (IV) (V) (VI) (VII) (VIII) (IX) (X) (XI) (XII)
(1) Net Sales/Income from operations 900.35 742.52 1,149.13 1,112.12 2,065.49 1,796.49 742.25 2,216.55 1,112.39 2,066.50
(2) Other income 14.83 5.90 17.71 8.26 18.73 6.76 5.91 10.47 8.28 16.05
(3) Total Income 915.18 748.42 1,166.84 1,120.38 2,084.22 1,803.25 748.16 2,227.02 1,120.67 2,082.55
(4) Expenditure                    
(a) (Increase) / Decrease in stock in trade and work inprogress 301.47 179.88 111.90 89.87 (7.24) 694.22 179.65 170.82 90.17 (6.14)
(b) Consumption of raw materials 363.76 339.35 637.48 665.56 1,383.35 729.14 339.35 1,425.75 665.56 1,383.35
(c) Purchase of traded goods 25.10 35.20 60.29 43.73 100.86 38.71 35.20 75.09 43.73 100.86
(d) Employee costs 19.02 17.02 35.44 31.45 63.92 24.44 17.02 46.58 31.45 63.99
(e) Depreciation 10.04 9.77 19.84 19.28 39.84 11.86 9.79 23.54 19.32 39.92
(f) Other expenditure 89.81 80.14 161.01 156.61 325.21 127.24 80.17 242.29 156.74 325.08
    809.20 661.36 1,025.96 1,006.50 1,905.94 1,625.61 661.18 1,984.07 1,006.97 1,907.06
                       
(5) Interest 9.15 6.78 20.53 14.83 31.93 15.78 6.80 37.59 14.86 31.96
(6) Profit from Ordinary Activities before tax, minorityinterest and share of profit of associate companies 96.83 80.28 120.35 99.05 146.35 161.86 80.18 205.36 98.84 143.53
(7) Tax Expense 30.56 28.81 41.11 35.98 45.61 56.46 28.81 74.08 35.98 45.67
(8) Net Profit from Ordinary Activities after tax, beforeminority interest and share of profit from associatecompanies 66.27 51.47 79.24 63.07 100.74 105.40 51.37 131.28 62.86 97.86
(9) Minority interest 0 0 0 0 0 12.22 0 15.47 0 0
(10) Net Profit before share of profit from associatecompanies 66.27 51.47 79.24 63.07 100.74 93.18 51.37 115.81 62.86 97.86
(11) Share of profit from associate companies 0 0 0 0 0 0 14.88 0 13.16 18.86
(12) Net Profit for the Period/Year 66.27 51.47 79.24 63.07 100.74 93.18 66.25 115.81 76.02 116.72
                       
(13) Paid-up equity share capital (Face value Rs.2/- perequity share) 25.57 25.41 25.57 25.41 25.41 25.57 25.41 25.57 25.41 25.41
(14) Reserves excluding revaluation reserve as per BalanceSheet of previous accounting year 0 0 0 0 486.86 0 0 0 0 525.54
(15) Earnings per share (for the period - not annualised)                    
  - Basic (Rs.) 5.19 4.05 6.21 4.97 7.93 7.30 5.22 9.08 5.98 9.19
  - Diluted (Rs.) 5.19 4.03 6.21 4.93 7.88 7.30 5.18 9.08 5.95 9.13
                       
16 Public Shareholding                    
  - Number of shares 38,750,146 37,918,165 38,750,146 37,918,165 37,918,165 38,750,146 37,918,165 38,750,146 37,918,165 37,918,165
  - Percentage of shareholding 30.31% 29.85% 30.31% 29.85% 29.85% 30.31% 29.85% 30.31% 29.85% 29.85%
                       
(17) Capital employed 1,197.78 998.64 1,197.78 998.64 1,132.74 1,647.26 1,000.45 1,647.26 1,000.45 1,171.77
                       

Note:

  1. The above financial results are drawn in accordance with the accounting policies consistently adopted by the Company.
  2. The results have been reviewed by the Audit Committee and approved by the Board of Directors at their meeting held on October 23, 2007.
  3. The auditors have carried out a limited review of the stand-alone and consolidated results of the Company for the quarter and half-year ended September 30, 2007.
  4. Pending announcement by the Government of India of final rates of concession for the complex fertilisers, income for the half year ended September 30, 2007 has been recognised, having regard to the prevalent concession scheme and according to management estimates of price concession receivable.
  5. Pursuant to the merger of Ficom Organics Limited ('Ficom') and its wholly owned subsidiary Rasilah Investments Limited ('Rasilah') with the Company effective April 1, 2006, corresponding previous period figures have been recasted to include those of Ficom and Rasilah.
  6. During the quarter under review, the Company has formulated a Scheme of Amalgamation of M/s.Godavari Fertilisers and Chemicals Limited with the Company. Pursuant to the provisions of Section 394 of the Companies Act, 1956, the Company is in the process of obtaining the necessary approvals for the said Scheme.
  7. The Company and its subsidiaries are engaged in the Farm Inputs business which, in the context of the Accounting Standard-17, is considered the only business segment. The results for the quarter and half-year ended September 30, 2007 include those of the retail business activity, commenced by the Company during the quarter under review, which are presently not material.
  8. During the quarter under review, pursuant to the shareholders' approval of the Employee Stock Option Plan 2007, certain employees of the Company have been granted stock options in the aggregate not exceeding 2,141,300 vesting over a period of four years commencing August 31, 2008. The exercise price being equal to the closing market price prevailing on the date prior to the date of grant, there is no deferred compensation cost to be amortised in this regard.
  9. Godavari Fertilisers and Chemicals Limited has become a subsidiary of the Company effective April 12, 2007, and therefore, the consolidated results of the company for the quarter and six months ended September 30, 2007 are not comparable with those of the corresponding previous quarter/period.
  10. During the quarter under review, 5 investor complaints were received and resolved. There were no complaints pending, both at the beginning and at the end of the quarter.
  11. Figures of the previous quarters/periods have been regrouped and reclassified, wherever considered necessary.

Place : Secunderabad

Dated: October 23, 2007

V. Ravichandran

Managing Director

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