Financials - Q4FY07- 02 May 2007

Kanoria Chemicals EBIDTA up by 34.5% in FY 2006-07 - Company secures IFC funding for second phase of expansion - Declares dividend of 30% -
New Delhi, May 02, 2007 - Kanoria Chemicals & Industries Limited (KCI), a leading manufacturer of chemical intermediates, today announced its annual audited results of fiscal 2006­07.

For the fiscal 2006-07, the company posted a growth of 34.5% in EBIDTA which stood at Rs. 842.78 million, up from Rs. 626.65 million last year.

Net sales turnover during the year grew by 41% to Rs. 4,301 million from Rs. 3,051 million last year.

Since the cash generation of the company continues to be good, the Board decided to maintain dividend as last year at 30%.

On account of scheduled completion of the Rs. 2 billion expansion of the Caustic Soda manufacturing capacity from 40,000 TPA to 90,000 TPA and doubling of the power generation capacity to 50 MW during the year, the company has witnessed higher costs on interest, depreciation and deferred taxes, which affected the net profit margins. The cash profits of the company for the fiscal 2006-07 is Rs. 579 million and the net profit is Rs. 195 million. The EPS is Rs. 11.66

The next phase of expansion is aimed at further increasing the capacity of Caustic Soda to 130,000 TPA and also increasing the capacity of downstream Chlorine derivative products by March 2008.

The International Finance Corporation (IFC) has sanctioned and is participating in the expansion by investing $20 million, of which $15 million as loan and $5 million in equity.

The Board has decided to allot IFC equity shares worth $5 million at a premium.

Mr. R.V. Kanoria, Chairman & Managing Director, Kanoria Chemicals said, "Robust growth in our operating profits demonstrates the successful implementation of the first phase of our expansion plans. We would like to thank International Finance Corporation for their reaffirmation on KCI's credibility by agreeing to partly fund our next phase of expansion."