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Have good order-book; raw material, freight costs are worries: Suven Pharma

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Have good order-book; raw material, freight costs are worries: Suven Pharma

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Suven Pharmaceuticals has a good order-book, Venkat Jasti, Chairman and Chief Executive Officer, told CNBC-TV18.

Suven Pharmaceuticals has a good order-book, Venkat Jasti, Chairman and Chief Executive Officer (CEO), told CNBC-TV18.

The pharma company reported earnings for the September-ended quarter with growth led by the speciality chemicals segment. The company posted a 27 percent growth in revenue on a yearly basis.
“The only worry point for us is the cost of raw materials going up and also (its) non-availability. In addition to that, the problems are non-availability of vessels and price increases, quadrupling in transportation cost ― that’s the main worry. Otherwise, we have a very good order-book and good growth pattern for the next six months,” Jasti said.
However, the company does not pass on all input cost increases, said Jasti.
“We cannot pass on (prices) unlike generic companies because these are long-term contracts. Only when contracts are renewed can we get an increase in prices. And if it is more than 10 percent, then we can have a sharing agreement with the customers,” he said.
For the entire management interview, watch the video
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