Road logistics industry to clock high single-digit growth this fiscal: ICRA

MUMBAI: The Indian road logistics industry is expected to clock a high single-digit growth this fiscal on an elevated base of the previous year,ICRAsaidonMonday.Thecredit ratings agency also expects the demand momentum to continue in FY24, aided by stable domestic consumption and investment demand,ICRAsaid.

The Indian road logistics industry’s revenue growth is pegged at a high single-digit on an elevated base of FY2023, ICRA said, adding thattheoutlookisstable.

The downside risks to the estimates remain from any material tapering of demand due to high inflationary and interest rate regime, the emergence of any further Covid waves, or a sub-par monsoon impacting the overall economic health, given its strong linkage to economic activity on an aggregate basis,itsaid.

According to ICRA, quarterly revenues for the logistics sector witnessed a marginal contraction of 2 per cent in Q3 FY23, compared to the earlierquarterofthesameyear.

Following two quarters of stable demand, economic activity was uneven in the third quarter of the previousfiscaldespiterobustdemand for contact-intensive services and upbeat sentiment during the festive season.

“We expect the revenues in Q4 FY2023 to be better than Q3, supported by favourable demand and realisations,”itstated.

On a monthly basis FASTag and ewaybillvolumespeakedinDecember 2022, thereafter coming down sequentially in January 2023 and February 2023 post the festive season impact.

On a year-on-year basis, the combined volumes for FASTag for January and February 2023 grew by 24 per cent, and e-way bill volumes grew by 19 per cent, according to ICRA.

The volumes are expected to remain stable over FY2024, given the expectation of a favourable demand scenariointhenear-term,itsaid.

“ICRA expects the aggregate operating profit margins of the sample to moderate to 12-14 per cent in FY2024, compared to 14 per cent in FY2022. The operators’ ability to effectfurtherratehikestooffsetinput priceincreasesamidstiffcompetition remains a key credit monitorable,” said Suprio Banerjee, Vice President atICRALtd. m.v “NORTHERN DEDICATION”

Revenue growth, according to him, over the medium-term would continuetobedrivenbydemandfrom varied segments such e-commerce, FMCG, retail, chemicals, pharmaceuticals, and industrial goods coupled with the industry’s paradigm shift towards organised logisticsplayers,post-GST,ande-way billimplementation.

Furthermore, multimodal offerings are likely to gain increased acceptance and traction going forward, given that players offering multimodal services had more flexibility.

Given these factors and the relatively higher financial flexibility available to large, organised players vis-a-vis their smaller counterparts, there is potential for increased formalisation in the sector going forward,ICRAsaid.

V-02314E IGM NO: 2340645 DATE: 12.04.2023

The above vessel has arrived at Mundra on 15/04/2023 as per following details.

Item Nos. B/L NOS.

5 EPIRAEESAD246476

Consignees are requested to obtain the DELIVERY ORDERS on presentation of ORIGINAL BILLS OF LADING duly discharged and on payment of relative charges as applicable within 5 days or else Detention Charges will be applicable. If there is any delay in CY-CFS / lCD's movement due to port congestion or any other cause beyond the control of the Shipping Line / Agents are not responsible for the same. Also note that the Shipping Line / or their Agents will not be held responsible for auction by Port / Customs / Custodian of uncleared cargo on expiry of stipulated period as laid down in the byelaws.

Consignees are advised that the carriers and/or their Agents are not bound to send individual notifications regarding the arrival of the vessel or the goods.

For vessel ETA / IGM- ITEM/ Exchange Rate / Local charges & Detention Charges please contact our office.

Emirates Shipping Agencies (India) Pvt. Ltd

Rajkamal-II, Office No. 103, 1st Floor, Plot No. 342, Ward - 12/B, Gandhidham - 370201. India. In case of any query kindly contact the below E-mail IDS & Phone Numbers : IMPORT related : ravi.vaghela@in.emiratesline.com

Tel. No. : +91-2836-239378 / 239379 - Mob. : +91 89809 97977

EXPORT related : benoy.varghese@in.emiratesline.com

Tel. No. : +91-2836-239378 / 239379 - Mob. : +91 89800 25092

IGM Tracking : http://www.emiratesline.com : 8090/eadmins/igm_main.jsp.

Notice To Consignees

Consignees are requested to obtain the DELIVERY ORDERS on presentation of ORIGINAL BILLS OF LADING duly discharged and on payment of relative charges as applicable within 5 days or else Detention Charges will be applicable.

If there is any delay in CY-CFS / lCD's movement due to port congestion or any other cause beyond the control of the Shipping Line / Agents are not responsible for the same. Also note that the Shipping Line / or their Agents will not be held responsible for auction by Port / Customs / Custodian of uncleared cargo on expiry of stipulated period as laid down in the byelaws.

Consignees are advised that the carriers and/or their Agents are not bound to send individual notifications regarding the arrival of the vessel or the goods.

For vessel ETA / IGM- ITEM/ Exchange Rate / Local charges & Detention Charges please contact our office.