Matrix Labs net profit up 6%

BS 200 SCORECARD

Hyderabad-based Matrix Laboratories has reported a profit after tax (PAT) of Rs 131.97 crore for the year 2004-05, a marginal increase of 6 per cent over Rs 124.61 crore posted in the previous year. Net sales increased 21 per cent to Rs 641.31 crore (Rs 530.02 crore).

The 11 per cent growth in profit before tax (PBT) is indicative of reduced margins. Exports for the year stood at Rs 333.14 crore as compared to Rs 299.21 crore in the previous year.

Significantly, the company increased its total R&D expenditure by 52 per cent at Rs 27.20 crore (Rs 17.95 crore). The provision for depreciation and tax has also gone up substantially as has total expenditure to Rs 447.2 crore (Rs 354.1 crore).

The company's fourth quarter's sales went up at Rs 158.4 crore as compared with Rs 140.6 crore in the corresponding previous quarter, but net profits were down to Rs 28.6 crore (Rs 38.4 crore).

The diluted earnings per share (EPS) for the year on the post-bonus paid-up capital of Rs 29.94 crore with a face of Rs 2 per share stood at Rs 8.99.

"The financial year 2004-05 has been eventful with company taking several strategic initiatives in terms of backward and forward integrations to establish its position as a strong player in the pharmaceutical industry. Simultaneously, we have also initiated steps to further improve our cost efficiency and scale of operations," said N Prasad, chairman and chief executive officer of Matrix Laboratories.

Of the Rs 75 crore the company received during the last quarter out of the Rs 97.90 crore settlement amount related to a potential patent infringement suit, only Rs 3.82 crore has been considered in the profit & loss account for the quarter.

The balance will be accounted on a quarterly basis over a period of time for which benefits are being accrued, the company press release added.