Stable demand in both domestic and export markets, led by a growing need for chronic therapies and newer launches, has kept the pharmaceuticals sector on a firm footing for long now.
In the current fiscal, demand growth is expected to be driven largely by higher exports, with the chaos heaped by the Covid-19 pandemic moderating demand in the domestic market.
That said, the government's focus on reducing dependence on imports from China and boosting domestic manufacturing through schemes for creation of bulk-drug parks and production-linked incentives for key drugs, etc., augurs well for domestic pharmaceutical firms over the medium term.
Higher input costs and temporary supply-chain disruptions amid the pandemic, and regulatory action, could moderate operating profitability for the Indian pharmaceutical sector in the current fiscal, which though will still remain at healthy levels.
Credit profiles too will remain stable, supported by steady cash generating ability and well managed balance sheets.
In this milieu, CRISIL is hosting a webinar where its experts will discuss:
Demand drivers and future outlook amid the pandemic
Emerging opportunities for Indian pharmaceutical firms
Profitability trends and regulatory monitorables
Outlook on credit quality of firms
The webinar will be followed by a panel discussion with industry experts and a Q&A session.
