Matrix Laboratories Limited has reported a profit after tax (PAT) of Rs 131.97 crore on a net sales of Rs 641.31 crore for the financial year ended March 31, 2005 (FY 05), as compared with a PAT of Rs 124.61 crore and net sales of Rs 530.02 crore in the previous year (FY 04).

The net sales for the year went up 21 per cent, while profit before tax (PBT) and profit after tax (PAT) increased by 11 per cent and 6 per cent, respectively. Exports for the year stood at Rs 333.14 crore as against Rs 299.21 crore in the previous year.

Before making provisions for R&D, interest, depreciation and tax, the company made a profit of Rs 205.01 crore for the year, as against Rs 185.62 crore in the previous year. The total R&D expenditure for the year increased by 52 per cent at Rs 27.20 crore, as against Rs 17.95 crore in the previous year. This accounts for 4.24 per cent of net sales in FY 05. The provision for depreciation and tax has also gone up substantially during the year.

The diluted earnings per share (EPS) for the year on the post-bonus paid-up capital of Rs 29.94 crore with a face of Rs 2 a share stood at Rs 8.99. The board of directors of the company at its meeting in Singapore today considered the above un-audited results.

For the fourth quarter ended March 31, 2005, the company posted a PAT of Rs 28.62 crore on a net sales of Rs 158.40 crore, as compared to Rs 25.55 crore and Rs 166.07 crore, respectively, in the third quarter ended December 31, 2004. This represents a sequential 12 per cent growth in PAT.

Of the Rs 75 crore that the company received during the last quarter out of the Rs 97.90 crore settlement amount related to a potential patent infringement suit, only Rs 3.82 crore has been considered in the profit & loss account for the quarter. The balance will be accounted on quarterly basis over a period of time for which benefits are being accrued.

The company has filed 31 drug master files (DMFs) with US FDA during the year taking the total number of DMFs to 46. Similarly, 20 innovation patents were filed during the year taking the total to 37.

The company's Active pharmaceutical ingredients (APIs) manufacturing facility at Kazipally (Unit-II), near Hyderabad, has been approved by the US FDA. With this, the number of US FDA-approved facilities of the company would be four, thus making it as one of the largest API manufacturing capacities in India to meet the regulatory market requirements.

"The financial year 2004-05 has been eventful with company taking several strategic initiatives in terms of backward integration and forward integration to establish its position as a strong player in the pharmaceutical industry. Simultaneously, we have also initiated steps to further improve our cost efficiency and scale of operations", said N Prasad, the chairman & CEO of Matrix Laboratories.

During the year, the company has purchased a finished dosage facility near Nashik in Maharashtra as part of its forward integration plans for the regulated markets. The facility, which has already received approvals from MHRA, UK; MCC, South Africa; and TGA, Australia, is gearing up for the US FDA inspection in the current year. This will make Matrix as one of the few Indian companies with US FDA-approved formulation facilities.

The company has also entered into separate MoUs with Aspen Pharmacare, South Africa, and MCHEM Pharma, China, as part of its strategic initiatives.