Unaudited financial results for Q2 approved by the Board of Directors

Sales turnover during this period is Rs 4791.87 crore, as against Rs. 2216.57 crore in the corresponding period last year.

The Profit from operations before other income, interest and exceptional item for the half year is Rs. 435.99 crore as against Rs.241.42 crore during the same period last year. Other income for half year is Rs.14.48 crore (Previous year Rs.1.48 crore) and interest charged Rs.35.6 crore (Previous year : Rs.37.49 crore) . After considering exceptional income of Rs.158.59 crore received from Foskor (Pty) Ltd (Foskor), South Africa as remuneration under the Business Assistance Agreement, Profit Before Tax for the half year is Rs.573.46 crore as compared to Rs 205.41 crore in the corresponding period last year.

The improved profitability has been due to higher subsidy income resulting from compensation for sulphur based complexes under the new Subsidy Scheme, higher profitability from Pesticides and Specialty Nutrients businesses and higher interest income. Besides, the income received under the Business Assistance Agreement with Foskor Pty Ltd, South Africa, amounting to Rs.158.59 crore also contributed for the higher profitability.

Provision for taxation (including Fringe Benefit Tax) for the period works out to Rs.197.19 crore (Corresponding period last year Rs. 74.08 crore). The net profit is Rs.376.27 crore as against Rs.131.33 crore during the corresponding period last year, representing an increase of 187% over the previous year.

Figures for the previous period include those of Godavari Fertilisers and Chemicals Limited which has since been amalgamated with the Company.

A copy of the advise to the Stock Exchanges giving the highlights of the un-audited financial results approved by the Board of Directors of the Company on October 22, 2008 is attached.

Headquartered in Chennai, the Rs.9582 Crore (USD 2.4 billion) Murugappa Group is India’s leading business conglomerate. Market leaders in diverse areas of business including Engineering, Abrasives, Finance, General Insurance, Cycles, Sugar, Farm Inputs, Fertilizers, Plantations, Bio-products and Nutraceuticals, its 29 limited companies have manufacturing facilities spread across 13 states in India. The organisation fosters an environment of professionalism and has a workforce of over 30000 employees. The Group which has forged strong joint venture alliances with leading international companies like DBS Bank, Mitsui Sumitomo, Cargill, China Engineering & Expoloration Bureau and Groupe Chimique Tunisien, has consolidated its status as one of the fastest growing diversified business houses in India.