The Hindu Business Line : Matrix Lab Q1 net down 38 pc despite growth in revenues

DESPITE recording a growth of nearly ten per cent in turnover, Matrix Laboratories Ltd (MLL) has suffered a fall of 37.91 per cent in net profit for the first quarter of current fiscal ended June 30.

According to the un-audited financial results approved by the MLL board here on Thursday, the company achieved a turnover of Rs 172.15 crore, as against Rs 156.55 crore in the corresponding quarter of previous fiscal.

The company suffered a steep fall in net profit at Rs 25.29 crore (Rs 40.74 crore), yielding a diluted EPS of Rs 6.72 (Rs 11.96) on the expanded equity base of Rs 29.94 crore (Rs 14.55 crore).

In a press release, the company said its R&D expenditure (both revenue and capex) for the quarter under review has grown by 132 per cent at Rs 16.65 crore as against Rs 7.16 crore in the same quarter of last fiscal.

The company has attributed the fall in profit during the quarter under review mainly to increase in the material cost on account of change in the product mix and increase in the crude oil prices in the international markets and also a significant increase in the R&D expenditure.

The company said it plans to invest more than six per cent of its sales on R&D during the current fiscal, as compared to 4.3 per cent in last fiscal.

The company has formed a special purpose vehicle (SPV) called Matrix Laboratories NV, Belgium, for the acquisition of the Belgian generic drug distributor DocPharma NV. Subsequent to the acquisition of 22 per cent controlling stake in DocPharma NV, Matrix Laboratories NV has filed draft prospectus with the Banking Finance and Insurance Commission (BFIC), Belgium, for its approval.

Post approval of the prospectus by the BFIC, an open offer would be made for the remaining shares of DocPharma. The company has obtained an irrevocable and unconditional guarantee from the ABN AMRO Bank for an amount of euro 165 million to fund the open offer, the release said.

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