Caraco Pharmaceutical Laboratories Ltd has posted net income of $2,204,749, or $0.09 per diluted share, on record sales of $8,721,600 for the first quarter of 2003, Narendra N. Borkar, Chief ExecutiveOfficer, reported.

Q1-2003 net sales rose 164 per cent over Q1-2002 net sales of $3,301,959. The Q1- 2003 net sales were up 16 per cent over net sales of $7,552,115 for Q4 2002. The Q1-2003 gross profit of $4,495,651 was up 209 per cent over Q1-2002's gross profit of $1,454,412.

The net profit for the quarter was $2,204,749, or $0.09 per diluted share, a 525 per cent turnaround from the year-earlier net loss of $519,241, or $(0.03) per diluted share.

Borkar said, "The first period of 2003 was our best quarter ever. We generated strong sales for most of the 13 drugs in our formulary and especially robust sales of newer approved products. "Both gross margin and our bottom-line improved appreciably, reflecting he success of our vertical-integration efforts and the purchase of raw materials and active substances at highly competitive prices. These positive operating results also reflect enhanced manufacturing efficiencies and economies of scale due to larger production-batch sizes.