PRESS RELEASE

Nicholas Piramal reports audited Q3 FY2006 results; Sales up 9.2% to Rs. 3.5 billion, Net Profit (pre-exceptional items) down 31.6% to Rs. 238.7 million

Mumbai, 19 January 2006: Nicholas Piramal India Limited (NPIL) today reported third quarter (Q3) audited results for FY2006.

Net Sales for the quarter ended 31 December 2005 were Rs. 3.5 billion, representing a growth of 9.2% over Q3FY05, while consolidated Sales were Rs. 4.0 billion, representing a growth of 17.3%. Net Profit for the quarter was Rs. 237.3 million, a de-growth of 69.9%, while Net Profit (before Exceptional Items) de-grew 31.6% to Rs. 238.7 million.

NPIL Exports continued to grow during Q3FY06. During the period, Exports reached Rs. 650.5 million, a growth of 66.2%. They now form 18.4% of Company Sales.

Lower Sales of Phensedyl and withdrawal of two Valdecoxib brands – Vah/Valto, in which NPIL was a leader, affected the third quarter profitability. NPIL also booked a marked-to-market foreign exchange loss of Rs. 20.9 million during the quarter. As a result, the operating profit margin during Q3FY06 was lower at 12.4% compared to 17.1% in Q3FY05.

The controversy relating to NPIL’s leading brand Phensedyl ended during the quarter, leading to recovery of Sales compared to Q2FY06. Phensedyl continues to perform well at the retail level, with ORG-IMS ranking it no. 2 by sales audit in November 2005. The domestic formulations business grew above market rate in all the therapeutic segments, except respiratory, NSAIDS and anti-infective segments.

During the quarter, revenues from NPIL’s first custom manufacturing contract with Advanced Medical Optics, Inc. increased to Rs. 80.9 million. During the review period, NPIL also announced signing of three new custom manufacturing contracts with AstraZeneca, a Global Hospital Products Company and Pfizer International LLC.

During Q3FY06, NPIL made its first global acquisition in the custom manufacturing business. It acquired Avecia Pharmaceuticals, UK for a consideration of GBP 9.5 million. The acquisition was completed on 03 December, 2005. Revenues from Avecia Pharmaceuticals were Rs 325.8 million during the period.

For further information contact:

Vijay Sathye
Vice President - Investor Relations and M&A
Nicholas Piramal India Limited
Mobile: +91-9821879774

* The results in the press release are on Standalone Audited basis. Stand Alone Accounts represent results without considering Joint Venture and Subsidiaries.