Matrix Laboratories, a Rs 60-crore plus Hyderabad based pharma major, managed to push its net profit by 40 per cent during the year ended March 2006 largely due to significant rise in other income and income from potential patent infringement suit.
The company's net profit increased to Rs 182.38 crore in 2005-06 from Rs 130.27 crore in the previous year. The earning per share improved to Rs 12.11 from Rs 8.90. The board of directors recommended equity dividend of 60 per cent (Rs 1.20 per share).
Though its net sales increased only by 4 per cent to Rs 667.14 crore from Rs 636.76 crore, its other income went up sharply to Rs 131.73 crore from Rs 11.70 crore. Further, income from potential patent infringement suit increased sharply to Rs 26.84 crore from Rs 3.82 crore in the last year. The company's exports increased by 16.2 per cent to RS 395.99 crore from Rs 341.01 crore. However, its domestic sales declined by 8.3 per cent to Rs 271.15 crore from Rs 295.76 crore. Its R&D expenditure moved up by 95.2 per cent to Rs 31.12 crore from rs 15.94 crore.
The company allotted 3,94,330 equity shares of Rs 2 each at a premium of Rs 141.13 during the last quarter of the 2005-06, on exercise of stock options under the ESOS. With this allotment, its equity capital increased to Rs 30.73 crore from Rs 29.95 crore. Its reserves stood at Rs 833.39 crore as against Rs 593.41 crore, a rise of 40.4 per cent.
Matrix has completed strategic investment in Fine Chemical Corporation, South Africa, Mchem Group, China and Concord Biotech Ltd in India.
On the consolidated basis, the company's net sales amounted to Rs 1159 crore and it earned a net profit of Rs 199.21 crore during 2005-06. The consolidated pharmaceutical sales reached at 1013 crore and that of medical supplies reached at Rs 161 crore. The consolidated results include Docpharma NV (w.e.f. July 8, 2005), Mchem Group, China (w.e.f. January, 16, 2006) and Concord Biotech Ltd, India (w.e.f. February 14, 2006). Further results of Astrix Laboratories Ltd, India and Fine Chemical Corporation, South Africa also included.