THE ZANDU PHARMACEUTICAL WORKS LTD.
		Regd. Office : 70, Gokhale Road South, Dadar, Mumbai - 400 025.
		UNAUDITED FINANCIAL RESULTS (PROVISIONAL) FOR THE QUARTER
		ENDED  31st DECEMBER, 2005					(Figures in Lakhs)
			Quarter	Quarter	Period	Period	Financial year
			ended	ended	ended	ended	ended
			31st Dec, 2005	31st Dec, 2004	31st Dec, 2005	31st Dec, 2004	31st March, 2005
			(Unaudited)	(Unaudited)	(Unaudited)	(Unaudited)	(Audited)
			(Reviewed)	(Reviewed)	(Reviewed)	(Reviewed)
		Net Sales	4432.28	3604.90	10033.37	8693.33	11342.19
		Other Income	93.13	80.50	224.57	186.35	318.59
		Total Income	4525.41	3685.40	10257.94	8879.68	11660.78
		Total Expenditure
		a) (Increase) /decrease in stock in trade.	105.24	(19.00)	215.19	144.24	53.97
		b) Consumption of materials.	1339.02	1268.79	2899.67	2597.52	3349.07
		c) Excise Duty	590.06	489.05	1186.42	995.82	1293.13
		d) Staff Cost	306.11	283.31	908.74	831.88	1144.33
		e) Advertisement and Sales Promotion	787.00	585.05	1534.62	1338.61	1650.83
		f) Other expenditure	727.84	650.65	1922.20	1823.57	2530.17
		g)     Interest	11.23	14.45	31.65	37.67	52.68
		h)     Depreciation	90.52	75.60	253.26	221.51	301.71
		Profit before Tax	568.39	337.50	1306.19	888.86	1284.89
		Provision for Taxation
		-- Current Tax	179.55	115.12	414.05	287.20	411.00
		-- Deferred Tax	(4.55)	5.88	10.95	13.80	0.65
		-- Fringe Benefit Tax	8.26	-	23.26	-	-
		Profit after Tax	385.13	216.50	857.93	587.86	873.24
		Paid-up equity share capital	604.80	604.80	604.80	604.80	604.80
		(Face value Rs.100/-)
		Reserves excluding revaluation reserves					4901.38
		(as per balance sheet)
		Basic & Diluted EPS for the period (Rs)	63.68	35.80	141.85	97.20	150.54
		Aggregate of non-promoter Shareholding
		(a) Number of Shares			326176	391916	391836
		(b) Percentage of Shareholding			53.93%	64.80%	64.79%
		Note :
		1.  The above results alongwith Auditor's Report on Limited Review were taken on record by the Board of Directors
		through Circular Resolution on 28th February, 2006
		2.   The Board of Directors recommended an Interim Equity Dividend of Rs. 35 per share on face value of Rs.100/- each
		aggregating to Rs. 241.36 lakhs including dividend distribution tax of Rs.29.68 lakhs.
		3.  The Company is in pharmaceutical business and considering the organisation structure of the company and its internal financial
		reporting,the company has only one reportable segment as per Accounting Standard on Segment Reporting (AS - 17).
		4.   The Company has investments aggregating to Rs 14.50 lakhs in the equity shares of Zandu Chemicals Limited, a company
		promoted by the Company, and has also given loans / advances to the said company aggregating to Rs 355.34 lakhs,
		which are outstanding as at 31st December, 2005. The investee company's accumulated losses have exceeded its networth
		and as informed the said company has as required by law referred the matter to Board for Industrial and Financial Reconstruction
		(BIFR) and the said company is hopeful of positive outcome.Accordingly,on that basis no provision is considered necessary
		by the management towards the diminution in the value of investments considered temporary and loans and advances
		considered good of recovery. This is a matter of qualification by the statutory auditors.
		5.  There were no complaints from investors outstanding at the beginning of the quarter. The Company
		has received  two complaints from the investors during the quarter and all the complaints were disposed
		off during the quarter.There were no complaints lying unresolved at the end of the quarter.
		6.   Previous period  figures have been regrouped wherever necessary.
					For The Zandu Pharmaceutical Works Ltd.
		Place  :  Mumbai				(Girish  G. Parikh )
		Date    :  28th February 2006				Managing Director