ISPAT INDUSTRIES LIMITED
            Regd. Office : Park Plaza, 71, Park Street, Kolkata - 700 016
UNAUDITED FINANCIAL RESULTS FOR THE PERIOD ENDED 30TH SEPTEMBER, 2006
                          (Rs. Crores)
Sl No. Particulars Quarter ended 30th Sept Half Year ended 30th Sept Quarter ended 30th June  Year Ended 31st March
2006 2005 2006 2005 2006   2006
Unaudited  Unaudited  Unaudited  Unaudited  Audited  Audited 
      Considering Merger of erstwhile Ispat Metallics India Limited Without considering Merger of erstwhile Ispat Metallics India Limited (As published last year)   Considering Merger of erstwhile Ispat Metallics India Limited Without considering Merger of erstwhile Ispat Metallics India Limited (As published last year)   Considering Merger of erstwhile Ispat Metallics India Limited Without considering Merger of erstwhile Ispat Metallics India Limited  
            (As published last year)  
(1) (2) (3) (4) (5) (6) (7) (8)       (9)
                       
1 Sales/Income from Operations 2090.05 1364.05 1338.03 3978.26 2697.57 2648.79 1888.21 1333.52 1310.76 5567.83
  Less : Excise Duty 205.80 142.86 139.24 424.30 295.15 288.40 218.50 152.29 149.16 621.28
    1884.25 1221.19 1198.79 3553.96 2402.42 2360.39 1669.71 1181.23 1161.60 4946.55
2 Other Income 8.46 10.99 8.50 20.20 29.13 25.93 11.74 18.14 16.39 51.99
                       
3 Total Income (1+2) 1892.71 1232.18 1207.29 3574.16 2431.55 2386.32 1681.45 1199.37 1177.99 4998.54
                       
4 Total Expenditure                    
  a) (Increase)/Decrease in Stock in Trade 10.78 179.53 172.52 28.56 (37.32) (40.09) 17.78 (216.85) (212.61) (85.72)
  b) Materials  Consumed 905.00 757.03 689.88 1678.86 1529.59 1455.89 773.86 772.56 766.01 2910.12
  c) Power & Fuel Cost 302.32 211.68 192.36 629.58 374.29 334.36 327.26 162.61 142.00 849.86
  d) Personnel Cost 40.99 29.95 27.20 77.14 62.38 55.78 36.15 32.43 28.58 131.55
  e) Other Expenditure 227.59 203.65 182.14 464.37 416.89 373.86 236.78 213.24 190.68 861.32
  Total Expenditure (4a to 4e) 1486.68 1381.84 1264.10 2878.51 2345.83 2179.80 1391.83 963.99 914.66 4667.13
                       
5 Profit before Interest & Finance Charges and Depreciation (3-4) 406.03 (149.66) (56.81) 695.65 85.72 206.52 289.62 235.38 263.33 331.41
                       
6 Interest & Finance Charges 245.29 250.29 182.86 546.88 463.20 336.82 301.59 212.91 153.96 956.83
                       
7 Depreciation  154.98 141.67 106.73 308.26 282.93 213.72 153.28 141.26 106.99 571.43
                       
8 Deferred Revenue Expenditure Written off              -                                -                -                                -             -               -    
                       
                       
10 Exceptional Items (Net)              -                                -                -                                -             -               -    
                       
8 Profit/(Loss) before Tax (5-6-7) 5.76 (541.62) (346.40) (159.49) (660.41) (344.02) (165.25) (118.79) 2.38 (1196.85)
                       
9 Provision for Taxation (Net)                    
   - Current              -                      -                              -                -                          -                              -             -             -             -                   (0.03)
   - Deferred Tax (Charge)/Credit (2.86) 179.99 114.82 51.54 220.22 114.53 54.40 40.23 (0.29) 388.67
   - Fringe Benefit Tax (0.58) (1.38) (1.25) (1.22) (2.31) (2.14) (0.64) (0.93) (0.89)                 (4.46)
                       
10 Net Profit/(Loss) (8-9) 2.32 (363.01) (232.83) (109.17) (442.50) (231.63) (111.49) (79.49) 1.20 (812.67)
                       
14 Share of Loss of an associate company                                        -  
11 Paid-Up Equity Share Capital 1218.40 1218.38 685.81 1218.40 1218.38 685.81 1218.39 1218.38 685.81 1218.38
  (Equity Share of Rs.10/- each)                    
                       
12 Reserves excluding Revaluation Reserve                   531.13
                       
13 Earning Per Share                    
  Basic and Diluted                     (Rs) (0.14) (5.52) (3.57) (1.21) (6.94) (3.77) (1.07) (0.81) (0.19) (7.93)
  (Not Annualised)                    
                       
14 Aggregate of Non promoter shareholding                    
   - Number of shares 604238300 592638300 315238656 604238300 315238656 315238656 ######## ######## ######## 592638300
   - Percentage of shareholding 49.43 48.48 45.52 49.43 45.52 45.52 48.48 48.48 45.52 48.48
Notes:
1 Interest & Finance Charges include foreign exchange variation on loans, which were hitherto being included in other expenditure upto the year ended 31st March 2006. The comparative figures of foreign exchange variations on loans for the quarter and half year ended 30th September 2005 and year ended 31st March 2006, to make them comparable, have also been regrouped accordingly.  
2 The Auditors in their report on the company's Accounts for the year ended 31st March 2006 had expressed their inability to express any opinion on the accounting of Deferred Tax Asset of Rs.628.30 crores.  However, based on the future profitability projections, the Company is virtually certain that there would be sufficient taxable income in the future, to claim the above tax credit. 
3 The company has identified Iron & Steel products as its sole operating segment and hence, no further disclosure is required under Accounting Standard 17.
4 In accordance with the revised Accounting Standard 15 on ‘Employee Benefits’ issued by the Institute of Chartered Accountants of India, which has become effective from 1st April 2006, the additional liability of Rs 10.21 crores (net of deferred tax credit of Rs. 5.18 crores) towards employee benefits upto 31st March 2006, has been adjusted with the Profit & Loss Account debit balance as on 1st April 2006. 
5 Previous year’s/ period’s figures have been re-grouped/ re-arranged wherever necessary. The erstwhile Ispat Metallics India Ltd (IMIL) has been merged with the Company from 1st April 2004. However, the orders of respective Hon’ble High Courts’ approving the merger of IMIL with the company from 1st April 2004, became effective only on 26th October 2005, on complying with various formalities, and, therefore, the figures of IMIL were not included in the corresponding quarter and half year ended 30th September 2005 in columns (5) & (8) above.
However, in order to present a proper comparison of the company’s financial performance during the quarter and half year ended 30th September 2006, the figures for the quarter and half year ended 30th September 2005, are separately indicated in columns (4) & (7) above, after incorporating therein the figures of erstwhile Ispat Metallics India Limited. 
6 Basic and Diluted EPS as stated in Serial No. 13 above, have been computed after considering the impact of proportionate arrear dividends on cumulative redeemable preference shares on the profit / loss for the respective periods.
7 At the beginning of the September 2006 quarter, there were no complaints from investors pending for disposal. During the quarter, 227 complaints were received and all the complaints were disposed off. At the end of the quarter, no complaints from investors were pending for disposal.
8 The financial  results for the quarter/half-year  ended 30th September 2006 have been subjected to a Limited Review by the Statutory Auditors of the Company.  The above financial results for the quarter/half-year ended 30th September 2006 were reviewed by the Audit Committee and taken on record by the Board of Directors at their respective meetings held on 18th October 2006.
For and on behalf of the Board
Place:  Mumbai Anil Sureka
Dated: 18th October 2006 Executive Director (Finance)