The growth is driven by the steady growth seen by the sector.
 
Pharmaceutical companies are expected to post a strong top line growth and improved profitability in the second quarter results of the current financial year. According to a report from Edelweiss Securities, it expects a robust growth of 18 per cent in revenues, EBITDA 22 per cent and earnings 18 per cent driven by the ramp-up in the US and steady growth seen in the Indian market.
 
The report also said that the growth from Russia/CIS and Japan is expected to be muted given the rouble/yen depreciation versus the rupee. Earnings momentum of pharma companies is to continue on robust top-line growth and improving profitability. Gross margin has been rising since the past few quarters as the US is gaining scale with more productive launches and the India business is bouncing back and favourable currency, the report added.
 
The report also noted that the business model of Indian generic players is seamlessly evolving towards higher value realisation. It expects the US growth to remain robust on market share gains and multiple niche launches going forward.