India’s pharma sector is expected to grow at 9-11 percent in FY22, rating agency ICRA said on Tuesday.
It attributed the growth to the improving demand for non-Covid products in addition to new product introductions, rupee depreciation, and expanding market coverage.
“Going forward, sustenance of trend in doctor visits and elective surgeries given the news around the Omicron variant, and performance of new launches in addition to revenue growth momentum in the acute segment will remain key monitorables,” ICRA said.
Further, pricing pressures and rising raw material costs are expected to contract margins for the sector to 22.5 percent in FY22 and further to pre-Covid levels of 21-22 percent in FY23, said Deepak Jotwani, Assistant Vice President and Sector Head, ICRA.
also read: Union Health Minister To Move Pharmaceutical Bill In Rajya Sabha
The outlook for the pharma sector remains ‘Stable’ led by healthy revenue growth and is seen remaining comfortable despite higher capital expenditure and R&D expenses given the robust cash levels.
(This story has been sourced from a third-party syndicated feed, agencies. Raavi Media accepts no responsibility or liability for the dependability, trustworthiness, reliability, and data of the text. Raavi Media management/ythisnews.com reserves the sole right to alter, delete or remove (without notice) the content at its absolute discretion for any reason whatsoever.)
