Revenues of the Indian road logistics industry will remain within a limited range 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 also said it expects a decline in government capital spending during the elections (given Model Code of Conduct requirements) and a moderation in consumer demand sentiment amid rising inflation and interest rates.

ICRA said that operating profit margins are expected to remain in a range between 10.5 and 12.5 percent in fiscal year 2025 as concerns about cost inflation persist. The outlook for the sector remains stable, driven by the continued momentum of economic activities, increasing strength in organized trade and continued support for various sectors. Such as e-commerce, consumer goods, retail, pharmaceuticals and industrial products.

He said monthly e-transfer volumes have remained largely stable in the past four months at more than 85 million, after recording all-time record volumes of 100 million in October. 2023, demonstrating the resilience of local trade and transport activities. Monthly FASTag volumes also moved in tandem with e-way bills, hovering between 295 million and 350 million in the current financial year, with an all-time high of 348 million. ICRA added in December 2023, reflecting business continuity.

Supriyo Banerjee, Vice President, ICRA Ltd and Head of Corporate Rating Sector, said: “Furthermore, road logistics players also remain vulnerable to environmental and social impacts. Risks.