The operating profit margins are expected to remain range-bound at 10.5-12.5 per cent in FY2025 as concerns on cost inflation persist
New Delhi: The Indian road logistics industry’s revenue will remain range-bound and grow at a slower pace of 3-6 per cent in the current financial year, rating agency ICRA said on Monday.
The rating agency further said it expects softening in the government capex during the elections (given the Model Code of Conduct requirements) and moderation in consumer demand sentiments amid high inflation and interest rates.
ICRA said operating profit margins are expected to remain range-bound at 10.5-12.5 per cent in FY2025 as concerns on cost inflation persist.
The outlook for the sector continues to be stable, fuelled by sustained momentum in economic activities, enhanced traction of organised trade and continued support from varied segments like e-commerce, FMCG, retail, pharmaceuticals, and industrial goods.
It said e-way monthly volumes remained largely stable in the last four months at above 85 million, post reporting all-time high volumes of 100 million in October 2023, signifying resilient domestic trade and transportation activities.
The monthly FASTag volumes have also moved in tandem with the e-way bills, ranging from 295 to 350 million in the current fiscal, with an all-time peak of 348 million in December 2023, reflecting business cont, ICRA added.
ICRA Ltd vice president & sector head – corporate ratings Suprio Banerjee said, “Additionally, road logistics players also remain exposed to environmental and social risks.”
