Sluggish exports may cap pharma YoY revenue growth in FY22, says Crisil

Sluggish exports may cap pharma YoY revenue growth in FY22, says Crisil
Share This :



Revenue growth of India’s pharmaceutical sector is expected to “moderate” to 9 per cent in FY22, as compared with a healthy rise of 12.5 per cent during the previous fiscal, said.


The agency attributed slower growth in exports, weak support from Covid-19 vaccine opportunities, and a slow pick-up in demand in the domestic formulations market as some of the reasons behind the possible degrowth.





“Operating profitability will shrink, too, by as much as 300 basis points this fiscal, due to a sharp increase in input and other costs. Well-managed balance sheets and prudent capital spends will, however, help keep credit quality ‘stable’.”


“Exports have been sluggish because of intense competition among generic players amid intensifying pricing pressure in the US market and lower visibility of new product launches due to delay in closure of regulatory actions on manufacturing plants by the US Food and Drug Administration (US FDA).”


On the other hand, domestic demand is witnessing a steady recovery after tepid performance last fiscal, said Isha Chaudhary, Director at Research.


“With normalcy returning to healthcare delivery services, domestic formulations revenue, led by acute therapies, is estimated to grow 14-16 per cent this fiscal, compared with 2 per cent last fiscal. Further, with ramped-up capacities and improving pace of vaccination, Covid-19 vaccines also provide additional domestic growth potential this fiscal,” Chaudhury said.


–IANS


rv-animesh/sn/skp/

(Only the headline and picture of this report may have been reworked by the Business Standard staff; the rest of the content is auto-generated from a syndicated feed.)

, Sluggish exports may cap pharma YoY revenue growth in FY22, says Crisil, Dear Reader,

Business Standard has always strived hard to provide up-to-date information and commentary on developments that are of interest to you and have wider political and economic implications for the country and the world. Your encouragement and constant feedback on how to improve our offering have only made our resolve and commitment to these ideals stronger. Even during these difficult times arising out of Covid-19, we continue to remain committed to keeping you informed and updated with credible news, authoritative views and incisive commentary on topical issues of relevance.

We, however, have a request.

As we battle the economic impact of the pandemic, we need your support even more, so that we can continue to offer you more quality content. Our subscription model has seen an encouraging response from many of you, who have subscribed to our online content. More subscription to our online content can only help us achieve the goals of offering you even better and more relevant content. We believe in free, fair and credible journalism. Your support through more subscriptions can help us practise the journalism to which we are committed.

Support quality journalism and subscribe to Business Standard.

Digital Editor





Source link

Share This :