Domestic road logistics industry revenues likely to grow up to 9%: ICRA | News
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As per ICRA, the industry logged a revenue of Rs 23,273 crore in FY24. | Representative Photo: Shutterstock
The domestic road logistics industry is expected to register a growth of up to 9 per cent in revenues in the ongoing 2024-25 financial year, according to ICRA.
The organised road logistics sector had witnessed a growth 4.6 per cent in the 2023-24 fiscal year, the ratings agency said in a report.
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As per ICRA, the industry logged a revenue of Rs 23,273 crore in FY24.
“ICRA expects the revenues of the Indian road logistics industry to grow by a moderate 6-9 per cent year-on-year (y-o-y) in FY25,” it said.
The agency further said it also maintains a stable outlook for the sector, fuelled by various government measures and policies in favour of the sector on expectations of good demand outlook from segments like e-commerce, FMCG, retail, chemicals, pharmaceuticals, and industrial goods.
Srikumar Krishnamurthy, Senior Vice President & Co-Group Head Corporate Ratings, ICRA Ltd, said, “In FY24, the growth was subdued on account of a relatively muted demand amid high inflation, an uneven monsoon, a relatively lacklustre festive season and the rising interest rate regime.”
“We expect the industry operating profit margins to remain in the range of 11-12 per cent in FY25, with the organised players expected to maintain the pricing premium amid an overall inflationary cost scenario,” he said.
(Only the headline and picture of this report may have been reworked by the Business Standard staff; the rest of the content is auto-generated from a syndicated feed.)
First Published: Oct 05 2024 | 5:11 PM IST
