Sintex Industries, a market leader in the plastic and textiles business segments, today announced its audited financial results for the quarter and financial year ended 31 March, 2008.

Key FY2008 Business Highlights

· Robust performance of Plastics driven by healthy growth of building materials (pre fabricated structures, BT shelters and monolithic structures) as well as Custom Molding businesses comprising composites

· Acquisitions of Wausaukee Composites (USA), Automotive Business Division of Bright Brothers Limited, Nief Plastics (France) completed.Integration progressing smoothly

· Pre fabricated structures plant at Kolkatta commences operations

· Capacity expansion of textile facility to 24 million meters completed

· Completion of fund raising set to drive further growth opportunities

· Board of Directors recommends dividend of Rs. 1/- per equity share

Financial performance overview

Q4FY08 (January – March 2008) v/s. Q4FY07 (January – March 2007)

· Consolidated Net income from operations up by 143% to Rs. 9,285 million from Rs.3,823 million

· Earnings Before Interest Depreciation, Taxes and Amortisation (EBIDTA) up 105% to Rs. 1,758 million from Rs. 858 million

· Net Profit After Tax (PAT)up to Rs. 946 million from Rs. 540 an improvement of 75%

· Basic and Diluted EPS (not annualized) stood at Rs. 8.02

· FY08 (April 2007 – March 2008) v/s. FY07 (April 2006 – March 2007)

· Consolidated Net sales higher by 95% to Rs. 22,742 million compared to Rs.11,653 million

· EBIDTA up to Rs. 4,428 million from Rs. 2,496 million reflected in a 77% growth

· Operating Margins continue to be healthy at 19.5%

· Net PAT stood at Rs. 2,303 million, up 73% over Rs. 1,328 million

· Basic and Diluted EPS: Rs. 19.54

Sintex Industries has consistently been a pioneer in innovation of high value plastic products. On the back of a healthy demand for cost effective housing and other constructions as well as the strong growth being witnessed by the power sector, the Company is witnessing several growth opportunities.

Further, having successfully completed several acquisitions in the year under review, the Company is now focused on integrating these companies and leveraging on the synergies they offer in terms of new product offerings, new customers and entry into new geographies. Enhanced scale and size combined with access to latest technologies has significantly strengthened the Company’s competitive position.

From a strategic perspective the Company has rearranged its business into two main divisions, both of which are within the Plastics segment.

These are • Building materials which comprises pre fabricated structures, monolithic structures and storage tanks

• Custom molding which largely includes composites for the automobile and electrical segments besides windmill, aerospace and defence amongst others

Textiles still remain an important part of the Company’s business however, owing to the fact that the prefab and custom molding businesss are presently contributing most towards growth, the approach has been realigned.

Commenting on the Company’s financial performance for Q4 and FY08, Mr. Amit Patel, Managing Director, Sintex Industries, said: “FY08 has been a year characterized by a number of acquisitions by the company that have largely helped us to expand and enhance our capabilities. Our goal is to be a truly global player in the composite space and drive opportunities and leverage on the opportunities for building materials in the domestic market.

We have delivered strong growth on the back of a healthy order book position. Our expansion program in both our plastics and textiles businesses is progressing on schedule. Our outlook for the future remains upbeat and we are confident that we can deliver results and enhance value for

stakeholders going forward”

Business wise Operating Review

Plastics

The plastic segment is the main growth driver for the Company and in accordance to this Sintex has been actively transforming this business from having a manufacturing model to a high-value service intensive model.

In FY08, Net income from operations of the plastic business stood at Rs. 1,950 million translating to a 135% improvement over the last year. Profit before Interest and Tax (PBIT) of the segment grew by 117% during this period to Rs 2,804 million.

This improvement was driven primarily by continued strong performance by the Building Materials and Custom Molded businesses.

Building materials

The Company is presently handling projects in thirteen states across the country. The considerable increase in investment by the Government in infrastructure, healthcare and education is driving growth in this business.

Demand for pre-fabricated structures primarily comes from primary school buildings, army shelters, mass low-cost housing, toilet blocks, BT shelters, prefab shops and other such areas. Increased capex outlays of private players leading to the commencement of several large projects is also driving demand for pre fabricated building materials like worker shelters, site offices, godowns, sanitation blocks, etc.

In the monolithic segment the demand for low cost mass housing has been increasing significantly. Sintex’ order book stands at Rs 17 billion in various projects ranging from slum development, police quarters and Government quarters. This order book will be executed over a period of 24 months.

Custom molding

Composites are fast becoming a high potential business offering the Company opportunities to cater to several industries both in India and globally. The recently completed acquisitions have enabled the Company establish a strong international footprint with customer acquisitions and multi product facilities spread across the globe having capabilities to cater to the electrical, automobile, aerospace, windmill and defence segments.

Domestically too, the increased thrust of the APRDP across several states enabled healthy performance by the Electrical segment. The Company is currently working with several State Electricity Boards and OEMs across the country supplying equipment like SMC enclosures, polymeric enclosures, polymeric insulators and cross arms for power transmission grids.

A continued transition to manufacturing higher value added items enabled sustained strong business performance.

The auto components business too maintained its encouraging growth performance further enhanced by exposure to the passenger car segment post its acquisition of Bright Brothers Limited

Textiles

Textile segment revenues improved by 10% and stood at Rs. 3,483 for FY08. EBIT also increased by 2% and stood at Rs. 668 for the year ended March 31, 2008. Both ‘Collection’ and ‘Fabric for Readymade garments’ businesses enjoyed healthy demand. With the completion of facility expansion programme to 24 million meters, the Company is poised to enhance its offerings in this space.

The annual capacity is being further expanded to 29 million meters per annum from 24 million meters per annum by FY09, programme which is expected to be completed by the end of FY09.

Subsidiary perspective

Zeppelin Mobile Systems India Ltd.

The performance Zeppelin Mobile Systems was strong with revenues of Rs 1,273 million.

Apart from supplying BT shelters to major telecom companies Zeppelin is also involved in producing a large range of high value products in FY08 such as refrigerated bodies, ambulances and mobile field hospitals. Zeppelin has also begun initiating its presence in the tourism sector with new product offerings.

Wausaukee Composites Inc., USA

Wausaukee Composites was acquired in June 2007 and at the time of acquisition its top line was USD 27 million. Wausaukee also acquired Nero Plastics Inc, a custom molder of low and medium volume structural plastic and composite components in December 2007. This strategic acquisition strengthened Wausaukee Composites’ position as a premier manufacturer of highly engineered structural plastic products supplied to OEM’s worldwide. The company also bagged a production contract from a leading player in the non conventional energy segment in the US, to manufacture 600 wind turbine generator nacelles over a three year period, in an additional production facility that has been acquired in Quebec City. Wausaukee’s consolidated revenues for FY08 stand at US$ 25.39 million

Bright AutoPlast Pvt. Ltd.

Sintex acquired the automotive products business division of Bright Brothers Limited in the form of a slump sale purchase. The annual revenue for Bright AutoPlast stood at Rs 404 million.

The acquisition of the automotive division of Bright Brothers Limited effective from December 2007 further added to our product range and customer profile.Bright Brothers is one of the largest plastic auto-ancillary companies in India with good relationships with Maruti, Tata Motors, Honda, M&M and Hyundai.

Nief Plastics SA, France

Sintex acquired Nief Plastic, France a manufacturer of an array of composite components aimed mainly at the Automotive, Electrical and Defense sectors, in an cash transaction of Euro 30.70 million (Equity Value) in October 2007. The acquisition was made through Sintex’s French based step down subsidiary, Sintex France SAS. Nief Plastic has eleven production facilities of which seven are in France; two are in Eastern Europe and one each in Tunisia and Morocco.

The Company serves leading international customers such as ABB, Alstom,Schneider, Valeo, Faurecia, Renault, Thyssen Krupp etc, many of which also have operations in India. Nief Plastic has 50% and 28% exposures to the automotive and the electrical industries respectively and a growing presence in the defence and aerospace sectors.

Nief delivered revenues of Euro 61.05 million in FY08.

Fund raising

Sintex has completed its fund raising programme through the issue of a combination of FCCB, QIP and promoter warrants totaling USD 525 million. These proceeds are to be used towards funding capex in the building material business and driving both inorganic and organic opportunities for composites.

Sourced From: Sintex Industries Ltd

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