Alembic Ltd, the pharmaceutical major with revenue over Rs 700 crore from Gujarat, has suffered a setback during the year ended March 2007 mainly due to provision for non recurring expenses like VRS and ONGC dues. Its net profit declined by 10 per cent to Rs 70.68 crore from Rs 78.52 crore in the previous year. The company's total sales increased by 7.3 per cent to Rs 702.48 crore from Rs 654.78 crore. Despite lower profits, the company management declared equity dividend of 50 per cent.

Alembic's exports reached at Rs 138.30 crore from Rs 128.10 crore, representing a growth of almost 8 per cent. Its exports from formulations and generic alliance improved to Rs 61.50 crore as against Rs 50.76 in the last year. The exports of bulk products however, declined slightly by 0.7 per cent to Rs 76.80 crore from Rs 77.34 crore.

The company incurred R&D expenditure of Rs 34.54 during 2006-07 as compared to Rs 26.67 crore in the previous year. The company provided Rs 17.59 crore towards VRS and Rs 9.77 crore for ONGC dues for earlier year.

Alembic has acquired Non oncology domestic formulation business of Dabur Pharma Ltd during April 2007 and the financial results of the acquisition will get reflected in the current year.