Suprio Banerjee, vice president and sector head, ICRA Ltd, said: “Additionally, road logistics players also remain exposed to environmental and social risks.
India’s road logistics sector’s revenue will remain subdued and grow at a slower pace of 3-6 percent within the current financial year, rating agency ICRA said on Monday.
The rating agency further said that it expects a softening in public investment during the elections (given the requirements of the Model Code) and a moderation in consumer demand sentiment amid high inflation and interest rates.
ICRA said operating profit margins are expected to remain in a range of 10.5 to 12.5 percent in fiscal 2025 as concerns over cost inflation persist.
The outlook for the sector remains stable, driven by continued momentum in economic activities, increased traction from organized trade and continued support from diverse segments such as e-commerce, FMCG, retail, pharmaceuticals and industrial goods.
It says monthly e-way volumes have remained largely stable at over 85 million over the past four months, after reporting an all-time high of 100 million in October 2023, indicating resilient domestic trade and transport activity.
The monthly FASTag volumes have also kept pace with the e-way bills, ranging from 295 to 350 million in the current fiscal, with a record peak of 348 million in December 2023, reflecting business activity, ICRA added .
Suprio Banerjee, vice president and sector head, ICRA Ltd, said: “Additionally, road logistics players also remain exposed to environmental and social risks.
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First print: April 8, 2024 | 6:51 PM IST