Nirmal Bang says Sun may shine despite Q4 being the worst quarter for pharma firms due to margin hit

In the last quarter of FY22, the overall growth for pharma companies is estimated at 8-10 percent, according to Nirmal Bang Institutional Equities. The firm expects EBITDA (earnings before interest, taxes, depreciation, and amortisation) during the quarter would be closely watched.

The recent incremental rise in input cost due to the Russia-Ukraine war, slower movement of goods due to rising COVID-19 cases in China, hike in freight costs combined with price pressure in the US are likely to impact operating costs, hence, pressure could be seen in margins for drug manufacturers and Active Pharmaceutical Ingredient (API) companies, the firm said.

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