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Rating agency Icra has said that revenue of top domestic pharmaceutical companies is likely to grow by 7-9 per cent in the current fiscal (FY24). It noted the growth will be supported by an 8-10 per cent expansion in the domestic market and a 6-8 per cent rise in the US market, while revenues from the European and emerging markets are expected to increase by 3-5 per cent and 8-10 per cent, respectively.

Agency said it has taken into account a sample set of 25 Indian drug firms, which constitute 60 per cent of the overall domestic industry. Further, it said that a continued focus on complex generics/speciality launches in the US market is expected to support industry margins in FY2024. It added the overall credit profile of Indian pharmaceutical companies is expected to remain healthy, supported by their stable earnings profile, comfortable leverage and coverage metrics, and strong liquidity position.

Icra Assistant Vice President & Sector Head Mythri Macherla said ‘The 8-10 per cent growth in the domestic market in FY24 will be supported by a WPI-linked price hike of 12.1 per cent allowed for products under the National List of Essential Medicines (NLEM), new product introductions and annual price hikes for non-NLEM products.