Business
Crisil lifts Indian pharma growth outlook to 11-13 percent
The Hindu BusinessLine··2d ago
Crisil said Indian pharma revenue growth is expected to rise to 11-13 percent this fiscal from 8 percent last year. Exports are projected to grow 14-16 percent as firms expand beyond the US into Europe, Asia, Africa and Latin America. Operating margins may fall by 150-200 basis points to 21-21.5 percent on higher costs. Nearly 190 Crisil-rated firms are covered.
Prism
What It Means For You
- Listed and private pharma firms in the Crisil sample face faster top-line growth but thinner operating margins.
- Export-heavy companies may gain if Europe, Asia, Africa and Latin America volumes rise as projected.
- Domestic chronic therapies remain the main home-market growth driver in the same report.
What's Happening
- Sehul Bhatt of Crisil Intelligence said complex generics and biosimilars should deepen Europe exposure.
- Formulations account for about 83 percent of pharma exports in the assessment.
- The domestic market is expected to expand 9-11 percent this fiscal.
What drives the outlook
- Nearly half of sector revenue already comes from exports.
- Higher raw material, energy and freight costs drive the margin squeeze.
- US pricing pressure continues even as differentiated launches and inventory normalisation offer partial offsets.
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