Revenue growth of the country's pharma industry could grow at 8.5% year-on-year and will be boosted by domestic formulations and some launches in the US market, Axis Securities has predicted. According to the report, the covered companies are expected to register a revenue growth of 8.5% YoY and 3.1% revenue growth during the second quarter of FY2025. Apart from revenue growth, EBIDTA is also likely to grow at 10.5% YoY and 3.8% QoQ. While profit after tax is also likely to grow by 14% during the year and 1% during the quarter. Some serious disease therapies may also see a comeback in the Indian market due to strong performance.
Significantly Dr. Reddy, Cipla and Aurobindo reported GRevlimid sales of $125 million, $30 million and $30 million during the second quarter of FY2025. Apart from that, the margin of most of the pharma companies is also estimated to improve by 40 basis points. In addition to a favorable quarter for the formulation business at the domestic level, stable freight costs, an active pharmaceutical ingredient policy and a more favorable product mix will enable margin growth.
API price improvement is likely due to volume growth and supply curbs from China. Moreover, crude prices have declined and shipping rates have also remained stable during the second quarter of FY25, which may also help pharmaceuticals companies maintain margins in the near term.
KIMS-HCG companies could register a growth of 12% Companies like KIMS and HCG are likely to register a growth of 12% YoY. However, companies such as Medanta may face some challenges due to the slowdown in the Lucknow facility, which may reduce its occupancy by 10%. An overall growth of 5% can be seen.
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