IPCA Laboratories, a Mumbai based Rs 750-crore pharmaceutical company suffered setback during the year ended March 2006 due to significant rise in cost of manufacturing. The company's standalone net profit declined by 18 per cent to Rs 63.98 crore from Rs 78.11 crore in the previous year. Lower profit put pressure on EPS, which declined Rs 25.59 from Rs 31.25.

The board of directors maintained the equity dividend at 55 per cent for the year 2005-06.

IPCA's standalone net sales increased by 11 per cent to Rs 751.35 crore from Rs 676.99 crore in the last year. Its staff cost went up by 19.7 per cent to s 99.65 crore from Rs 83.28 crore and cost of raw material increased by 11 per cent to Rs 344.47 crore as against Rs 310.30 crore in the previous year.

Company's new formulations manufacturing unit near Dehradun, Uttaranchal has commenced the commercial production from May 2006.