ISPAT INDUSTRIES LIMITED

UNAUDITED FINANCIAL RESULTS FOR THE QUARTER ENDED JUNE 30, 2004

(Rs Crores)

SN.	Particulars	Unaudited		Audited
		Quarter ended June 30		Year ended  March 31
		2004	2003	2004
1	Sales/Income from Operations	1307.41	814.94	4114.71
	Less : Excise Duty	63.21	71.80	380.41
		1244.20	743.14	3734.30
2	Other Income	4.39	30.24	86.23
3	Total Income (1+2)	1248.59	773.38	3820.53
4	Total Expenditure
	a) (Increase) / Decrease in Stock in Trade	(19.59)	(50.88)	(54.66)
	b) Materials  Consumed	671.16	436.94	1966.10
	c) Purchase of Finished Goods	-	22.32	71.52
	d) Power & Fuel Cost	136.21	102.54	475.09
	e) Personnel Cost	23.24	15.30	71.57
	f) Other Expenditure	230.38	140.61	658.62
	Total Expenditure (4a to 4f)	1041.40	666.83	3188.24
5	Profit before Interest & Finance Charges, Depreciation,	207.19	106.55	632.29
	Deferred Revenue Expenditure & Exceptional Items (3-4)
6	Interest & Finance Charges	164.46	71.85	335.26
7	Depreciation	108.92	52.14	219.66
8	Deferred Revenue Expenditure Written off	4.29	-	17.16
9	Profit / (Loss) before Exceptional Items (5-6-7-8)	(70.48)	(17.44)	60.21
10	Provision for Taxation (Net)
	- Current Tax	-	-	-
	- Deferred Tax Credit/(Charge)	24.86	28.34	(15.89)
11	Net Profit / (Loss) (9-10)	(45.62)	10.90	44.32
12	Paid-Up Equity Share Capital	685.77	685.76	685.77
	(Equity Share of Rs 10/- each)
13	Reserves excluding Revaluation Reserve	-	-	-
14	Basic EPS                 (Rs)	(0.88)	0.01	(0.11)
	Diluted EPS              (Rs)	(0.88)	0.01	(0.11)
	(Not Annualised)
15	Aggregate of Non promoter shareholding
	- Number of shares	315238656	315238656	315238656
	- Percentage of shareholding	45.52	45.52	45.52

Notes
1(a)	In the case of lenders who are yet to accord their approval for participation in the Corporate Debt Restructuring (CDR) scheme, Interest has been provided in accordance with the existing terms applicable to the respective loans.
(b)	The Equity conversion into 0.01% Cumulative Redeemable Preference Shares (CRPS), conversion of term loans into Equity and conversion of a portion of interest dues into 10% CRPS, in terms of the restructuring scheme, have not been considered, pending fulfillment of certain compliances and necessary approvals of Shareholders, High Court etc.
(c)	In terms of the restructuring scheme, M/s Ispat Metallics India Limited (IMIL) would be merged with the company effective from April 1, 2003. Pending the completion of various formalities concerning the above merger, the operating results indicated above are exclusive of the operating loss of IMIL for the quarter ended June 30, 2004 and year ended March 31, 2004.
2.	Interest & Finance Charges and Depreciation during the current quarter are substantially higher compared to the corresponding quarter of the previous year consequent upon capitalisation of Stage A - Phase II of the Hot Strip Mill project during March 2004.
3.	The Auditors, in their report on the company’s Accounts for the year ended March 31, 2004, had commented about their inability to ascertain the impact, if any, on the company’s financial statements of certain inter-corporate deposits considered as recoverable and deferred tax asset recognised based on future profitability projections. As per the management, all inter-corporate deposits are fully recoverable and are expected to be recovered by March 31, 2005. As regards deferred tax asset, based on future profitability projections, it is certain that the benefits would be availed of.
4.	The company has identified Iron & Steel products as its sole operating segment and hence, no further disclosure is required under Accounting Standard 17.
5.	Previous period figures have been regrouped/rearranged wherever necessary.
6.	At the beginning of the quarter ended June 30, 2004, there were no complaints from investors pending for disposal. During the quarter, 331 complaints were received and 327 complaints were disposed of. At the end of the quarter ended June 30, 2004, 4 complaints from investors were pending for disposal which have since been disposed of.
7.	The above results for the Quarter ended June 30, 2004 were reviewed by the Audit Committee and taken on record by the Board of Directors at their meeting held on July 26, 2004, and have been subjected to a limited review by the company’s statutory auditors.

Place: Mumbai Dated: July 26, 2004	For and on behalf of the Board
		Anil Sureka Executive Director (Finance)