PRESS RELEASE

Nicholas Piramal reports audited Q4 FY2006 results; Net sales up 57.3% to Rs 3.3 billion, Net profit Rs. 375.9 million.

NPIL plans to raise monies to fund potential acquisitions.

Mumbai, 25 April 2006: Nicholas Piramal India Limited (NPIL) today reported fourth quarter (Q4) and annual audited results for FY2006.

Net Sales for the quarter ended 31 March 2006 were Rs. 3.3 billion, representing a growth of 57.3% over Q4-FY05. Net Profit for the Quarter was Rs. 375.9 million, compared to a loss of Rs. 124.8 million in the same quarter last year. Net Profit (before Exceptional Items) was Rs. 392.8 million, compared to a Net Loss of Rs. 479.5 million in Q4-FY05. R&D revenue expenditure reached 5.6% of Sales during the quarter. The EPS for the quarter was Rs 1.8 as compared to Rs. (0.7) for Q4-FY05.

NPIL’s domestic formulations reported strong performance during the quarter with Sales of Rs.2.3 billion, compared to Rs. 1.3 billion in Q4-FY05. The fourth quarter of last year was severely affected by destocking from trade due to the VAT change. NPIL reported strong growth across eight therapy areas, including the respiratory segment. Phensedyl regained its strong position in the market and was ranked as the No. 1 brand by ORG IMS for the month of January 2006. The Company has been focusing on lean channel and field force productivity initiatives through FY2006. As per ORG-IMS Feb-MAT data, Nicholas Piramal is now the 2nd fastest growing company among the top-10 companies in the domestic market, with a Feb-MAT growth of 17.6% compared to market growth of 10.9%.

The Company has made significant investments to secure Custom Manufacturing business over FY2005 and FY2006, and has initiated commercial relationships with over 10 global pharma companies. Sales from AMO contract stabilized through Jan-Mar-06, generating revenue of Rs. 109 million during the quarter. During the Quarter, NPIL successfully completed operational integration of Avecia Pharmaceuticals Limited, including initiation of post-merger initiatives to turnaround the Company.

Nicholas Piramal’s consolidated Sales for the Quarter were up 83.2% to Rs. 4.2 billion. Consolidated Net Profit for the Quarter was Rs. 151.7 million compared to a Net Loss of Rs. 134.3 million in Q4-FY05. This included consolidated R&D revenue expenditure of 7.3% and funding of Avecia operational deficits during the quarter. The consolidated EPS for the quarter was Rs. 0.7 as compared to Rs. (0.7) for Q4-FY05.

For the year ended 31 March 2006, Nicholas Piramal standalone Sales grew 14.1% to Rs. 14.1 billion, while standalone Net Profit grew 0.5% to Rs. 1.7 billion. The previous year included a one-time exceptional income of Rs. 862 million. On a Net Profit (excluding exceptional items) basis, Profit grew 66.3% to Rs. 1.7 billion. The EPS for the year was Rs. 8.2 as compared to Rs. 8.5 for FY05.

The Company’s Consolidated Sales for FY2006 grew 21.0% to Rs. 15.8 billion, while Profit after tax decreased 26.5% to Rs. 1.2 billion, mainly because of the one-time exceptional receipt in FY2005. Profit after tax (before exceptional items) grew 21.2% to Rs. 1.2 billion. The consolidated EPS for the year was Rs. 5.8 as compared to Rs. 8.2 for FY05.

On the NCE Research front, phase I/II trials for its oncology lead molecule P276 has shown encouraging results during FY06 and an additional 3 molecules are expected to enter Phase-I clinical trials in FY2007.

Nicholas Piramal has been evaluating global acquisition opportunities to further expand its global CMO footprint. The Company announced today that its Board has approved raising of resources through issue of appropriate securities in domestic and/or international markets, up to an amount not exceeding US$ 1.5 billion equivalent from time to time, to fund potential acquisitions.

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For further information contact:

Vijay Sathye    PR   investorrelations@nicholaspiramal.co.in 

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