Date:27/04/2005 URL: http://www.thehindubusinessline.com/2005/04/27/stories/2005042702630300.htm

Back Matrix Labs Q4 net down 25.5%

Our Bureau

Hyderabad , April 26

DESPITE recording a growth of 12.65 per cent in net sales for the fourth quarter of 2004-05, Matrix Laboratories Ltd has suffered a decline of 25.5 per cent in net profit. The fall was attributed to higher allocations to R&D, depreciation and taxation. For the full year, the company recorded a growth of 21 per cent in net sales and nearly 6 per cent in net profit.

The company has posted a net profit of Rs 28.62 crore on a net sales of Rs 158.4 crore during the quarter under review, compared with a net profit of Rs 38.42 crore on a net sales of Rs 140.61 crore in the corresponding quarter of the previous fiscal. For the fiscal, the company reported a post-tax profit of Rs 131.97 crore (Rs 124.61 crore) on net sales of Rs 641.31 crore (Rs 530.02 crore). The total R&D expenditure has increased by 52 per cent to Rs 27.20 crore (Rs 17.95 crore). This accounts for 4.24 per cent of net sales in fiscal 2005.

The diluted earnings per share for the year on the post-bonus paid-up capital of Rs 29.94 crore with a face value of Rs 2 a share stood at Rs 8.99, against an EPS of Rs 9.99 on the equity capital of Rs 12.72 crore in the previous fiscal.

According to the Matrix Chairman and CEO, Mr N. Prasad, the company settled a potential patent infringement suit favourably for Rs 97.9 crore, of which, Rs 75 crore was received. Out of this, only Rs 3.82 crore was considered in the profit and loss account for the quarter. The balance would be accounted on a quarterly basis over a period of time for which benefits were being accrued.

To raise $200 m

Matrix Laboratories has informed the stock exchanges that its board of directors at its meeting on Tuesday has approved a proposal to raise funds of approximately $200 million.

This could be by way of debt and/or equity related instruments, global depository receipts, American Depository Receipts, foreign currency convertible bonds, subject to the approval of shareholders and other approvals.