Financials - Annual Financials 2005-06 - 24 April 2006

Kanoria Chemicals consolidated net profit up 30% at Rs. 29.65 crores: Declares 30% dividend

New membrane cell plant commences commercial production: Capacity up 80% to 90,000 TPA
Net Sales Turnover up 6%
April 24 2006, New Delhi: Kanoria Chemicals & Industries Limited (KCI), India's leading manufacturer of chemical intermediates, today announced that its consolidated net profit for 2005-06 was up 30% at Rs. 29.65 crores as against Rs. 22.82 crores last year. The foundation for the year's increased profitably was led by the increased efficiencies and net sales turnover was up 6% from Rs. 287 crores to Rs. 305 crores.

The Company has proposed a dividend of 30%. The consolidated EPS was up by 33% to Rs. 17.60 from Rs. 13.19 last year.

According to Mr. R V Kanoria, Chairman and Managing Director, KCI, the company has outperformed the industry, and this success is owed mainly due to the strategy to focus on continually improving operational efficiencies with reducing costs and to implement extensive backward and forward integration in production processes.'

He added, "Our first and foremost aim is to steer our company towards profitably implementing our first phase of expansion and working towards starting the execution of the second phase "
Investment Details Expected date of completion
Phase 1 Rs 180 cr Caustic soda cap up from 50,000 TPA to 90,000 TPA

New membrane cell unit installed
Completed and commenced commercial production on 24 April 2006
Power generation cap up from 25 MW to 50 MW Completed and commenced commercial production on 15 December 2005
Phase 2 Rs 150 cr Caustic soda cap up from 90,000 TPA to 130,000 TPA with simultaneous expansion in capacities of Chlorine derivative products Expected to complete by December 2007
The company also announced that the first phase of expansion involving membrane cell technology is now complete and has commenced commercial production. With this the company's Caustic Soda production capacity almost doubles from 50,000 tonnes per annum (TPA) to 90,000 TPA. This twin 180 cr expansion project also doubled the power generation capacity from 25 MW to 50 MW. Earlier this year – the company had already announced a Rs 150 cr second phase of expansion that is expected to take its Caustic Soda capacity up to 130,000 TPA.

About Kanoria Chemicals

Kanoria Chemicals & Industries (KCI) is a leading manufacturer of Chlor-alkali and Alco-chemical based intermediates with a portfolio comprises of over 15 products. Emerging as a market leader in three and with substantial market share in all others, it is ISO 9001, ISO 14001 and OHSAS 18001 certified besides being rated a 'CRISIL GVC Level 3' for its strong capability with respect to wealth creation for all its stakeholders while adopting sound corporate governance practices.