Inflation-linked road toll rate hike to be modest at 2-5% in FY24: Icra

Credit rating agency ICRA on Monday said the inflation-linked toll hike should be relatively modest at 2-5 per cent in FY24 as compared to 8.7-14.6 per cent last fiscal.

ICRA has revised the outlook on the toll road sector to stable from positive for FY24.

“In the backdrop of easing WPI inflation to 4.95 per cent in December 2022 and an expected WPI inflation of sub-2 per cent in March 2023, the inflation-linked toll hike should be relatively modest at 2-5 per cent in FY2024 compared to the 8.7-14.6 per cent toll rate hike in FY2023,” ICRA said.

According to ICRA, the change in outlook to stable primarily reflects the expected moderation in toll collection growth to 6-9 per cent in FY2024, compared to a stellar 17-20 per cent growth witnessed in FY2023.