Matrix Laboratories, a MNC belonging to Mylan Laboratories Inc, USA, has suffered setback during the first quarter ended June 2008 on account of higher R&D expenditure and interest burden. The company's consolidated net profit declined by 87.2 per cent to Rs 3.72 crore from Rs 26.88 crore in the corresponding period of last year. However, its consolidated net sales increased by 19.3 per cent to Rs 533.21 crore from Rs 447.02 crore. With significant lower profit, its earning per share nosedived to Rs 0.24 from Rs 1.74 in the last period.

The company's R&D expenditure increased by 89 per cent to Rs 55.13 crore in the first quarter of 2008-09 from Rs 29.20 crore in the similar period of last year. Further, its interest cost went up by 47 per cent to Rs 30.57 crore from s 20.80 crore and its other income declined to Rs 6.54 crore from Rs 9.53 crore. The profit before R&D expenditure and interest increased by 22.4 per cent to Rs 104.77 crore from Rs 85.63 crore

The revenues from pharmaceutical segment increased by 18.7 per cent to Rs 483.82 crore from Rs 407.69 crore and that from medical supplies increased by 25.6 per cent to Rs 49.39 crore from Rs 39.33 crore.

The standalone net sales during the quarter under review increased by 53.8 per cent to Rs 317.06 crore from Rs 206.10 crore in the similar period of last year. The standalone net profit has taken significant jump of 103 per cent to Rs 11.08 crore from Rs 5.45 crore in the last period with strong improvement in earning per share to Rs 2.09 from Rs 1.67. Its exports increased by 76.5 per cent to Rs 237.32 crore from Rs 134.49 crore and domestic revenue moved up to Rs 79.74 crore from Rs 71.71 crore.