New Delhi [India], April 4 : India's leading pharmaceutical companies are expected to report strong sales growth of up to 16 per cent year-on-year (YoY) in the financial year 2024-25, according to a report by Centrum Institutional Research.
The growth will mainly be driven by the robust performance in the domestic formulations (DF) and moderate improvement in US sales.
It said "On aggregate basis, we expect the pharma companies under our coverage (SUNP, CIPLA, DRRD, TRP and JBCP) to post sales growth of 16 per cent YoY to Rs 332 bn".
The report covers key pharma players such as Sun Pharma (SUNP), Cipla (CIPLA), Dr Reddy's Laboratories (DRRD), Torrent Pharma (TRP), and JB Chemicals (JBCP).
The report states that domestic formulations are expected to grow by 12 per cent YoY, while US sales are estimated to rise by 5 per cent YoY. A weaker Indian rupee (INR) against the US dollar (USD) is also expected to support growth during the quarter.
Among the companies, Sun Pharma is likely to post the highest US sales growth of 12 per cent YoY, thanks to its strong specialty products portfolio. On the other hand, Cipla's US sales are expected to remain under pressure with a 3 per cent YoY decline.
In the domestic market, Dr Reddy's Laboratories is projected to lead with a 21 per cent YoY growth, mainly due to strong performance from in-licensed products.
The report also highlighted a significant improvement in profitability. The companies under coverage are expected to post an EBITDA (earnings before interest, taxes, depreciation, and amortization) of Rs 92 billion, up 30 per cent YoY.
In addition to pharma companies, diagnostic firms like Dr Lal PathLabs (DLPL), Metropolis Healthcare (METROHL), and Vijaya Diagnostic (VIJAYA) are also expected to see healthy growth.
The report also notes that US sales across the covered companies are expected to grow 5 per cent YoY to USD 1.2 billion, supported by niche product launches and reduced price erosion. Sun Pharma is again expected to lead in US sales growth, driven by its strong specialty product performance.
Disclaimer: This post has been auto-published from an agency feed without any modifications to the text and has not been reviewed by an editor