Exclude the pharma industry from the effects of corona

Mumbai, Ta. 25 September 2020, Friday

The coronavirus may have swept most of the country, but the pharma industry has been spared the impact and the pharma industry could achieve double-digit growth in exports in the current financial year, a report said.

Rating agency Crisil expects the pharma sector to see an 11-14 per cent increase in exports in the current financial year as against 10 per cent in the previous fiscal.

The growth rate in domestic formulations is expected to be 3 to 4 per cent, up from 10 per cent in the previous financial year. Thus, the overall growth rate of the pharma industry is projected to be 3 to 4 per cent in the current financial year, according to the report of the rating agency.

The operating profits of the 20 pharma companies rated by Crisil will be as low as 1.5 per cent, but they will still see strong growth of 12 per cent. This growth is being seen despite the high prices of raw materials.

Their credit profile will continue to be supported by the healthy balance sheets of pharma companies. In comparison, the credit profiles of companies in other sectors are at risk.