STOCK MARKET BSE NSE

Revenue growth of drug firms in current fiscal to be in the range of 7-9 per cent: ICRA

The ratings agency noted that the impact of COVID-19 on the Indian drug firms was relatively limited last fiscal due to consistent demand for pharmaceutical products among others.

Published: 02nd July 2021 04:03 PM  |   Last Updated: 02nd July 2021 04:09 PM   |  A+A-

Scientists work with a bioreactor at a Regeneron Pharmaceuticals facility in New York state, for efforts on an experimental coronavirus antibody drug. 

Image for representation (File Photo | AP)

By PTI

NEW DELHI: Ratings agency ICRA on Friday said it expects revenue growth of some of the leading drugs firms to be in the range of 7-9 per cent in the current fiscal with gradual improvement in the COVID-19 situation in the country.

The growth will be supported by the consistent demand for pharmaceutical products and the low base of FY2021, though some impact on volume growth will be witnessed due to the second wave of Covid-19 related lockdowns.

"Revenue growth for ICRA sample set (21 companies) is estimated at 7-9 per cent in FY2022 and 8-11 per cent in FY2023, supported by gradual recovery post the initial impact of Covid-19," the ratings agency's Vice President & Sector Head Gaurav Jain said in a statement.

In the current financial year, the sample set is estimated to witness year-on-year growth of 6-8 per cent in domestic market formulations, 5-7 per cent in the US business and 8-10 per cent in the European business, he added.

The growth for the US and European markets remain sensitive to the depreciation of the INR against the USD/GBP/EUR, Jain noted.

"The credit outlook for the Indian pharmaceutical industry remains stable led by healthy accruals, low leverage levels and healthy liquidity profile of the pharmaceutical companies. ICRA expects the credit metrics of its sample set of Indian pharmaceutical companies to remain comfortable despite higher capital expenditure and R&D expenses. Furthermore, the liquidity profile of these companies is also expected to remain comfortable," Jain said.

ICRA also noted that the impact of COVID-19 on the Indian drug firms was relatively limited last fiscal due to consistent demand for pharmaceutical products and resumption of imports of key input materials from China from March 2020 onwards.

The revenue growth for ICRA sample of 21 companies remained muted at 5.8 per cent in FY2021.



Comments

Disclaimer : We respect your thoughts and views! But we need to be judicious while moderating your comments. All the comments will be moderated by the newindianexpress.com editorial. Abstain from posting comments that are obscene, defamatory or inflammatory, and do not indulge in personal attacks. Try to avoid outside hyperlinks inside the comment. Help us delete comments that do not follow these guidelines.

The views expressed in comments published on newindianexpress.com are those of the comment writers alone. They do not represent the views or opinions of newindianexpress.com or its staff, nor do they represent the views or opinions of The New Indian Express Group, or any entity of, or affiliated with, The New Indian Express Group. newindianexpress.com reserves the right to take any or all comments down at any time.

flipboard facebook twitter whatsapp