Matrix Laboratories, a subsidiary of Mylan Laboratories, USA with equity holding of over 71 per cent, has suffered heavy setback during the year ended March 2008 on account of diminution of Rs 487 crore to the carrying cost of investment in Docpharma. The company incurred heavy consolidated net loss of Rs 456.93 crore as against a net profit of Rs 78.31 crore in the previous year. Its profit before provision for impairment of goodwill of Docpharma declined by 22.7 per cent to Rs 79 crore from Rs 102.14 crore in the previous year. With negative returns, its earning per share worked out to negative Rs 29.59 as compared to Rs 4.98.

The company's consolidated net sales increased marginally by 4.9 per cent to Rs 1728.07 crore from Rs 1648.03 crore in the previous year. Its pharmaceutical sales increased by 10 per cent to Rs 1570.67 crore from Rs 1428.30 crore. However, its sales of medical supplies declined by 28.4 per cent to Rs 157.40 crore from Rs 219.73 crore.

Matrix's standalone sales improved by 25.3 per cent to Rs 938.63 crore during the year ended March 2008 from Rs 749.22 crore in the previous year. Its exports went up by 22.9 per cent to Rs 620.66 crore from Rs 505.18 crore. Its domestic sales moved up by 30.3 per cent to Rs 317.97 crore from Rs 244.04 crore. The company incurred a standalone net loss of Rs 298.36 crore as compared to a net profit of Rs 99.61 crore due to provision for diminution in the value of investment in Docpharma. Its research and development expenditure increased by almost 33 per cent to Rs 106.41 crore from Rs 80.09 crore.

As against the equity capital of Rs 30.92 crore, Matrix's reserves declined to Rs 648.99 crore for the year ended March 2008 from Rs 938.88 crore in the previous year. The earning per share before exceptional item worked out to Rs 6.66 as compared to Rs 6.48 in the last year.