Powered by: Motilal Oswal
20/04/2023 4:35:32 PM | Source: Accord Fintech
Ind-Ra maintains neutral outlook for Indian pharmaceutical sector for FY24
News By Tags | #248 #2842 #642
Ind-Ra maintains neutral outlook for Indian pharmaceutical sector for FY24

Maintaining a neutral outlook for the Indian pharmaceutical sector for FY24, credit rating agency, Ic and Research (Ind-Ra) has said that the Indian pharmaceuticals market (IPM) is likely to grow 10%-11% year on year (yoy) in FY24 (FY22: 14.5% yoy; FY23: 9.3% yoy).

The agency also expects a muted performance in the US generic market due to a high single-digit price deflation (9MFY23 and FY22: high single digit to low double digit). As per the agency, the Indian active pharmaceuticals ingredient (API) suppliers witnessed weak growth of negative 8.1% yoy in FY22 (FY21: 19.2% yoy), due to inventory destocking and high base last year, while a recovery was seen in 9MFY23 (up 5.6% yoy).

Ind-Ra further noted that the API business of selected companies is expected to report high single-digit growth in FY24 due to a demand uptick; the overall revenue growth for them is also expected at 9%-10% yoy, given their optimised operating costs, a moderation in the US price erosion, a softening of raw material and other cost (logistic/freight). This will lead to a healthy EBITDA margin performance (around 21%) in FY24 (FY22: 20.1; FY21: 23.0%; 9MFY23: 20.3%).c

Disclaimer: The content of this article is for informational purposes only and should not be considered financial or investment advice. Investments in financial markets are subject to market risks, and past performance is not indicative of future results. Readers are strongly advised to consult a licensed financial expert or advisor for tailored advice before making any investment decisions. The data and information presented in this article may not be accurate, comprehensive, or up-to-date. Readers should not rely solely on the content of this article for any current or future financial references. To Read Complete Disclaimer Click Here