Date: 27/05/2024

Road transport fleet revenue seen up by 9-11 pc in FY25

Revenues of road transport fleet operators are likely to grow by 9-11 per cent in 2024-25 (FY25) on the back of better domestic demand, according to rating agency CRISIL Ratings (Crisil). The credit profile of operators should remain strong as well, as they may look to moderate capital expenditure (capex) towards fleet expansion, following strong additions in the past three fiscals, even as new guidelines for air-conditioned driver cabins kick in next fiscal. Providing support is also steady working capital, said the rating agency. It expects operating margins of fleet operators to increase by 75-100 basis points (bps) in the ongoing fiscal year. Growth in road transport freight in FY25 will be driven by volume-intensive sectors like mining, industrial, manufacturing, infrastructure and engineering goods, as per a report.
Source: Exim News Service: Mumbai, May 26