Last fiscal, India's pharmaceuticals industry logged moderate revenue growth as sales in the domestic market came in slower because of the high-base effect of fiscal 2022. However, exports, especially to the regulated markets, benefited from a sharp depreciation in the rupee against USD and higher volumes.
This fiscal, revenue growth should remain stable, riding on steady domestic demand and an expected increase in new product launches in the export market, especially with regulatory inspections increasing, post the pandemic period.
Over the medium term, the government's focus on reducing import dependence through setting up of bulk drug parks and the Production-Linked Incentive (PLI) scheme for key active pharmaceutical ingredients and formulations augur well for the domestic revenue streams of drug makers.
Operating profitability will be supported by a decline in input and logistics costs, and part easing of pricing pressure in the US market, which is the largest export destination.
Well-managed balance sheets and healthy cash accrual should keep credit profiles steady this fiscal.
In this milieu, CRISIL Ratings is hosting a webinar at 3:00 pm on August 22, 2023, where its experts will delve into:
Demand drivers and outlook across markets
Growth opportunities linked to the PLI scheme
Profitability trends of drug makers rated by CRISIL Ratings
Outlook on credit quality
The presentation will be followed by a panel discussion with sector experts and a Q&A session.
Disclaimer: This event and its content are intellectual property and confidential information of CRISIL. Any use of the same without written permission of CRISIL is illegal and hence punishable. Recording the webinar in any form in full or part or copying, altering, distributing or streaming the webinar is strictly prohibited and violation will attract legal action.
