Press Release
Mumbai
October 26th 2004.
Matrix declares 1 : 1 Bonus issue
Highlights:
Bonus issue in 1 : 1 ratio
Stock split into a face value of Rs. 2 each
60% (Rs. 6/- per share) final Dividend for FY 04
H 1 - FY 05 net profit at Rs 82.7 crore (32% growth),
Gross sales at Rs. 334 crore
Q2 - FY 05 net profit at Rs. 42 crore (31% growth),
Gross sales at Rs 171 crore
Annualised EPS at Rs 119 on expanded capital base
Dr. Michael Wooldridge , former Health Minister of
Australia, joins the Board.
To set up Formulation facility with Rs. 75 crore
investment for contract manufacturing to pharmaceutical
industry in regulated markets
The board of directors of Matrix Laboratories Limited is pleased to recommend a Bonus issue in the ratio of 1 : 1. The Board at its meeting today in Mumbai also recommended the sub division of equity shares (stock split) into a face value of Rs. 2/- each, as against the current face value of Rs. 10 each. The board also recommended a final dividend of 60 % (Rs. 6/- per share) for the financial year ended March 31st 2004, in addition to the 50 % interim dividend paid in January 2004.
Announcing the decisions of the Board, Mr. N Prasad, the Chairman & CEO of Matrix, said: "The decisions are in line with Matrix's belief in enhancing the wealth of its shareholders. The sub-division of shares is expected to make the stock affordable to the retail investors, thereby increasing the market depth to the stock."
Matrix's shareholders have immensely benefited with the appreciation of its share price in the last few years, which is evident from the fact that the market capitalisation that stood at less than Rs. 10 crore at the time of change of management in May 2000 has risen to the astronomical level of over Rs.2700 crore at present. As on September 30th 2004, the company has a net worth of Rs 648 crore and the Book Value per share stood at Rs 445.
The company will seek the shareholders' approval for the above proposals at the ensuing Annual General Meeting (AGM) to be held in December.
For the half-year ended September 2004, the company recorded a net profit of Rs 82.7 crore, an increase of 31.68 % over the same period last year. This is despite the higher provision for depreciation and tax, and increase in R&D expenditure. The net profit or the first half works out to be an annualized EPS of Rs 119 on the expanded capital base of Rs 14.55 crore.
Gross sales for the first half stood at Rs. 334 crore, an increase of 24.09 % over the corresponding period last year. Of the total sales, exports account for 54.97 %.
For the second quarter ended September 2004, the company posted a net profit of Rs. 42 crore with a growth of 30.79 % and Gross sales of Rs. 170.9 crore with an increase of Rs. 20.22% over the corresponding quarter last year.
The company has filed eight Drug Master Files (DMFs) with US FDA during first half of the current fiscal, taking the total number of US DMFs to 27 as of September 2004. "We hope to have over 40 US DMFs on hand by the end of the current fiscal, reflecting our wide basket of products for the US and other regulated markets", Mr. Prasad added. The company has filed a cumulative number of 34 invention patents (process as well as polymorph) for 21 products by the end of September, which again reflects the IPR-focus.
Matrix has decided to set up an US FDA compliant Greenfield Formulations facility with an investment of Rs 75 crore for contract manufacturing of formulations to the pharmaceutical industry in regulated markets. "This is fully in line with our business philosophy of not competing with our customers. Contract manufacturing of formulations will be a complementary business and gives us an opportunity to serve our customers better, besides improving our value chain by adding value to our APIs business," Mr. Prasad explained.
Matrix's board is pleased to announce the appointment of Dr. Michael Wooldridge, the former health minister of Australia, as a Director. Dr. Michael Wooldridge has a rich experience in the healthcare sector in Australia. He is the chairman of Neurosciences Australia, HealthSource Australia (Ministerial Advisory Committee on AIDS, Sexual Health & Hepatitis), and Resonance Health (Cooperative Research Centre in Oral Health Science, University of Melbourne).
The Board has accepted the resignation of Mr. C. Ramakrishna as Executive Vice President (Corporate Finance & Corporate Services). However, Mr. Ramakrishna will continue to be on the Board and advises the company on strategic issues in the capacity of Corporate Advisor.
The merger formalities of Vera Laboratories Limited, and Fine Drugs and Chemicals Limited (FDCL), besides two other small companies, with the company have been completed. Merger will come into effect retrospectively from January 1st 2004. The shares of Matrix are expected to be credited to the shareholders of Vera Laboratories, Fine Drugs and Chemicals, and other transferee companies before the end of December 2004. The shareholders of Vera Laboratories and Fine Drugs and Chemicals are also entitled for Bonus shares and Dividend declared today.
|
