PRESS RELEASE

Nicholas Piramal’s registers 22.3% growth in sales for
Q2 FY04
Net Sales of Rs. 3110.0 million; Profits grew faster than sales
Operating Profits up by 26.2% and Net Profits up by 82.4%

Mumbai 21st October 2003: Nicholas Piramal India Ltd. registered a 22.3% growth in net sales and 26.2% growth in operating profits for the second quarter of FY 2003-04 (Q2 FY04). Keeping with the impressive track record that NPIL has set in the past, Net Profits was also up by 82.4%.

Net Sales stood at Rs. 3110.0 million for the period under review (Q2 FY03: Rs. 2542.6 million). Operating Profit before Interest, Depreciation and Tax grew to Rs. 670.9 million in Q2 FY04 from Rs. 531.6 million for the corresponding period in FY 03. Net profits also grew by 82.4% to Rs. 476.9 million. (Q2 FY 03: Rs. 261.5 million). The EPS after extraordinary items was Rs. 12.48 from Rs. 6.88 in the corresponding period of the previous year.

During the period under review, profit growth was higher despite Exceptional Charges of Rs. 34.7 million and also non-operating other income being lower by Rs. 23.2 million.

For the first half of FY04, Nicholas Piramal India Ltd. registered a 20.4% growth in net sales and 22.5% growth in operating profits for the Half Year of FY 2003-04 (HY FY04). Keeping with the impressive track record that NPIL has set in the past, Net Profits was also up by 27.2%.

Net Sales stood at Rs. 5,747.5 million (HY FY03: Rs. 4,774.8 million). Operating Profit before Interest, Depreciation and Tax grew to Rs. 1200 million in HY FY04 from Rs. 980 million for the corresponding period in FY 03. In line with the above net profits also grew by 27.2% to Rs. 729 million. (HY FY 03: Rs. 573 million). The EPS after extraordinary items was Rs. 19.1 from Rs. 15.1 in the corresponding period of the previous year.

Continuing with its trend, NPIL’s Domestic Formulations business, which contributes to 72.4% of total sales, grew 13% in the first half of FY 04, against an industry growth of 4.4% (ORG-MARG August ’03). Net sales for the domestic formulations business for the first half of FY 04 stood at Rs. 4,164.0 million as against Rs. 3,686.1 million in first half of FY03. The company has launched nine new products during first half of FY04 mainly in the CNS and Respiratory areas. The new products have contributed Rs. 341.5 million to sales. (Contribution of 8.2%)

For first half of FY04, NPIL’s therapeutic areas of CNS (17.9%), Nutritionals (19.3%), CVS (28.7%), Anti-Diabetics (57.2%), Dermatology (18.4%) and NSAIDS (28%) have shown significant growth over the corresponding period for the previous year. Seven of the nine therapeutic areas have out performed the market.

Nicholas Piramal is currently on the threshold of a significant execution move on the exports front. NPIL’s Exports have grown to Rs. 482.5 million in first half of FY04 from Rs. 164.2 million for the same period in the previous year (a growth of 193.9%). This includes sales from the USFDA approved facility acquired on January 1, 2003. The company has also filed two (2) DMFs including one for Verapamil Hydrochloride during the period under review. Nicholas expects exports to cross the One Billion mark in this fiscal.

NPIL’s has earmarked Rs. 750 million over two years as Capital Expenditure for its R&D activity. The new R&D facility in Goregaon, Mumbai, is spread over an area of 2,00,000 sq ft and will focus on Rheumatology & Cancer research, apart from new chemical entities (NCEs) and new drug-delivery systems (NDDS).

The company has also invited two internationally renowned scientists, Sir Ravinder Maini and Prof Bob Chaudhuri, to join their Scientific Advisory Board to provide impetus to their Rheumatology & Cancer research.

Mr. Ajay Piramal, Chairman, NPIL, stated: “We have outperformed the industry yet again. I am confident that our efforts in the domestic business and our unique exports strategy will help us create value, both for our shareholders and the public at large.”