Indian pharma industry expected to log in 8-10% revenue growth in FY24: Crisil
Crisil in its latest report has said the Indian pharmaceuticals industry is expected to log in a revenue growth of 8-10 per cent in current fiscal (FY24) aided by a steady domestic growth and increased exports to regulated markets, even as semi-regulated markets face headwinds. It stated a study of 186 drug makers, which accounted for about half of the Rs 3.7 lakh crore annual revenue of the sector last fiscal, indicates as much.
Further, he said operating profitability is also seen improving 50-100 basis points (bps) to 21 per cent this fiscal, supported by moderation in input and logistics costs, and abating pricing pressure in the US generics market. It stated credit profiles will remain stable owing to low-leverage balance sheets and moderate capex plans.
Crisil Research Director Aniket Dani said ‘Similar to last fiscal, domestic growth in fiscal 2024, will be led by 5-6 per cent increase in realisations, supported partly by high price hikes allowed by the National Pharmaceutical Pricing Authority (NPPA) for drugs under price regulation.’ He added sale of existing drugs and new launches will drive 3-4 per cent volume growth.
