Wockhardt Ltd, a Mumbai based Rs 2650-crore plus pharma company, has failed to generate any significant growth in profitability during the second quarter ended June 2008 mainly due to higher input costs.

The company's consolidated net profit, after extraordinary item, improved marginally by 3.8 per cent to Rs 106.3 crore from Rs 102.4 crore in the corresponding period of last year. However, the net profit before adjustment declined by 6.3 per cent to Rs 95.9 crore from Rs 102.4 crore. The net sales moved up sharply by 48.3 per cent to Rs 935 crore from Rs 630.3 crore.

The company's international business went up by 65 per cent and domestic business increased by 14 per cent. The company's formulation sales in US increased by 140 per cent to Rs 169.70 crore from Rs 70.6 crore and that in Europe increased by 49 per cent to Rs 454.1 crore from Rs 305.6 crore. Similarly its formulation sales in India increased by 15 per cent to Rs 223.8 crore from Rs 194.5 crore. Rest of the world sales moved up by 72 per cent to Rs 44.6 crore from Rs 25.9 crore. Further, the sales of bulk drugs in US increased by 34 per cent to Rs 12.2 crore. However, the sales of bulk drugs in India declined by 18 per cent to Rs 6.6 crore from Rs 8 crore.

For the first half ended June 2008, Wockhardt's net profit, after extraordinary item, declined by 6.8 per cent to Rs 157.2 crore from Rs 168.7 crore in the corresponding period of last year. Its sales for the first half increased by 49.2 per cent to Rs 1720.7 crore from Rs 1153.1 crore. Its international business moved up by 67 per cent and domestic business increased by 13 per cent. Wockhardt received US approval for 12 new products and it is marketing 25 products under its own label.

The European operation continues to account for 50 per cent of revenue is growing ahead of the overall markets. UK leads the way with double digit growth in a market that is growing at 6 per cent. Pinewood the Irish business has had a difficult during the first half due to reductions in the wholesale margins and depreciation of the UK pound against the Euro. The French business also remained flat in first half, but is expected to improve in the second half with a range of marketing initiatives that have been put in place.