Matrix net down 24% to Rs 27 cr

Hyderabad-based Matrix Laboratories, a subsidiary of Mylan Laboratories, US, reported 23.9 per cent decline in net profit at Rs 27.5 crore for the quarter ended March 2007, on a consolidated basis, compared with Rs 36.16 crore in the corresponding quarter previous year. However, profit before tax for the quarter was up 8.48 per cent at Rs 427.80 crore compared with Rs 394.33 crore in the corresponding previous quarter.

The company's net sales registered 11.36 per cent increase at Rs 437.43 crore for the fourth quarter from Rs 392.8 crore in the corresponding previous quarter in 2005-06. The results include the operations of all its subsidiaries, including that of Docpharma. Higher R&D spend at

Rs 34.1 crore during the quarter ended March 2007 from Rs 14.7 crore in the corresponding previous quarter and provisioning for tax at Rs 17.85 crore from just Rs 2.27 crore in the last quarter impacted the company's bottom line.

For the full year, sales increased by 42 per cent at Rs 1,648 crore, but the net profit decreased 61.7 per cent to Rs 76.31 crore from Rs 199.2 crore in the previous financial year. An increase of 155 per cent in R&D spend at Rs 100.7 crore along with the overall increase in expenditure were the immediate causes for the steep drop in net profit.

On a standalone basis, Matrix Laboratories' net profit for the fourth quarter registered 77 per cent increase at Rs 54.37 crore compared with Rs 30.7 crore in the corresponding previous quarter. The company's net sales increased 48.23 per cent to touch Rs 238.79 crore compared with Rs 161 crore in the corresponding quarter previous year. Income from exports during the quarter rose 44 per cent by Rs 185.7 crore compared with Rs 128.9 crore.