The revenues of the Indian road logistics industry is expected to grow by a moderate 6-9 per cent year on year (YoY) in fiscal 2024-25 (FY25), according to ICRA.
Following some disruption in business activities during the first quarter (Q1) of FY25 amidst the general elections, the sector prepares for the much-awaited seasonally strong festive period.
An increase in manufacturing output amidst restocking and an uptick in consumer spending and e-commerce activities augur well for logistics demand, ICRA said in a note.
This, coupled with a favourable monsoon and the government’s continued thrust on capital formation, is likely to support revenue growth.
ICRA maintains a ‘stable’ outlook for the sector, fuelled by various government measures and policies in favour of the sector and the expectation of a stable demand outlook from varied segments like e-commerce, fast moving consumer goods, retail, chemicals, pharmaceuticals and industrial goods.
ICRA foresees organised players to maintain the pricing premium amid an overall inflationary cost scenario and shall support operating profitability in FY25.
The e-way monthly volumes have grown steadily over the years and remained largely stable in the last four months at above 100 million, with August 2024 reporting all-time high volumes of 105 million, signifying resilient domestic trade and transportation activities.