Chennai: Indian road logistics sector is likely to see around 11%-13% growth in FY23 said a latest report by ICRA. This is up from its earlier estimate of 7%-9% growth. The upward revision is on account of a favourable demand environment coupled with firm freight rates.
The numbers though will look better thanks to base effect given that FY2022 had a weak first quarter, while the second wave of Covid-19 raged. According to ICRA, revenue growth will be at a higher single digit for FY2024 over FY2023 on an elevated base and continuation of a healthy demand scenario.
The report also listed some possible downside risks including emergence of any further waves or new variants, as witnessed in a few countries, and its ripple effects on India, given its strong linkages to economic activity.
