Matrix Laboratories Limited has recorded a Profit Before tax (PBT) of Rs 35.54 crore and profit after tax (PAT) of Rs 25.55 crore on a sales turnover of Rs 175.46 crore for the third quarter ended December 31, 2004. This is as compared to a PBT of Rs 40.41 crore and PAT of Rs 33.41 crore on a sales of Rs 144.19 crore in the corresponding period last year.

The decline in PAT despite higher turnover is primarily due to delay in launch of some products in regulated markets and more than anticipated fall in the prices of Citalopram, besides higher provision for depreciation, tax and higher expenditure on R&D.

For the nine months period December 2004, the company posted a PAT of Rs 103.34 crore on a sales of Rs 509.84 crore, as against Rs 96.20 crore and Rs 413.34 crore, respectively, in the corresponding period last year. This works out to be an annualized EPS of Rs 9.48 on the post-bonus paid up capital of Rs 29.94 crore with face value of Rs 2 a share.

"We have plans in place for launching new products in the regulated markets in the coming quarters and it is expected to improve the performance", said Dr.C.Satyanarayana, the Chief Operating Officer (COO) of Matrix.

"The purchase of Finished Dosage Forms unit near Nashik is expected to fast track our entry into contract manufacturing of formulations for regulated markets. The unit is expected to go for US FDA inspection within a year's time", Dr. Satyanarayana added.

The company has already given effect to the sub-division of shares (stock split) to a face value of Rs 2 each from that of Rs 10 earlier. Subsequent to the approval of shareholders at the AGM held on December 16, 2004, the board at its meeting today allotted Bonus shares in the ratio of 1:1.

Mr. Arun Duggal has joined the board of Matrix Laboratories today as an Independent Director. Mr. Duggal had a 26 years career with Bank of America, mostly outside India. His last assignment was the Chief Executive of Bank of America in India from 1998 to 2001. He is currently the International Advisor to General Atlantic Partners, a leading American Private Equity firm with a $ 5 Billion investment portfolio, besides being on the board of several reputed Indian companies.

The company has filed eight DMFs with US FDA during the quarter, taking the total number of US DMFs to 35 as of December 2004, and is on track to meet the target for the full year. Four process innovation patents were filed during the quarter, taking the total number of patents to 38.

Launch of MEWA:
True to his firm belief in sharing wealth with the employees of the company for their commitment and dedication, Mr. Prasad, the promoter of the company, today transferred 20 lakh equity shares (post split and post Bonus) from his holdings to MEWA (Matrix Employees Welfare Association). The objects of MEWA Trust are to provide financial assistance to the employees of the company for housing, healthcare, higher education, children's marriages and meeting exigencies, besides contributing for social cause.