Road transport operators will see revenue growth this year
ROADS & HIGHWAYS

Road transport operators will see revenue growth this year

According to a Crisil Ratings assessment, revenue growth for road transport fleet operators is anticipated to increase to 9?11% in the current fiscal year 2024?2025. Notwithstanding weak exports, the rating agency's projections are predicated on stronger domestic demand. A higher operating profit is observed due to improved fleet utilisation and stable fuel prices.

Operators' credit profile should also be robust, even if next year will see the implementation of new regulations requiring air-conditioned driver cabins. After three years of significant expansions, operators may choose to scale down on capital expenditure expenditures towards expansion.

According to reports, truck driver cabin air conditioning systems will soon need to be installed by automakers; the implementation is scheduled to start in 2025.

Fleet increases would be limited to 15% of the current fleet size this fiscal year, on a much enlarged base, with the focus now being on the consolidation of operations. Furthermore, should operators choose to modify older cars, the Ministry of Road Transport and Highways' rule requiring air-conditioned cabins for drivers starting in October 2025 would result in nominal capital expenditures.

Furthermore, export-oriented industries account for about a third of the freight demand; these sectors are improving this year after slowing down the previous year, in accordance with economic patterns in the US and the eurozone, India's two main export markets.

Crisil expects growth in volume this year to be driven by freight-intensive domestic sectors, such as mining, industrial, manufacturing, infrastructure and engineering goods. With some of the costs remaining steady, the operating margins of operators are expected to improve to 9.0-9.5 % this year.

According to a Crisil Ratings assessment, revenue growth for road transport fleet operators is anticipated to increase to 9?11% in the current fiscal year 2024?2025. Notwithstanding weak exports, the rating agency's projections are predicated on stronger domestic demand. A higher operating profit is observed due to improved fleet utilisation and stable fuel prices. Operators' credit profile should also be robust, even if next year will see the implementation of new regulations requiring air-conditioned driver cabins. After three years of significant expansions, operators may choose to scale down on capital expenditure expenditures towards expansion. According to reports, truck driver cabin air conditioning systems will soon need to be installed by automakers; the implementation is scheduled to start in 2025. Fleet increases would be limited to 15% of the current fleet size this fiscal year, on a much enlarged base, with the focus now being on the consolidation of operations. Furthermore, should operators choose to modify older cars, the Ministry of Road Transport and Highways' rule requiring air-conditioned cabins for drivers starting in October 2025 would result in nominal capital expenditures. Furthermore, export-oriented industries account for about a third of the freight demand; these sectors are improving this year after slowing down the previous year, in accordance with economic patterns in the US and the eurozone, India's two main export markets. Crisil expects growth in volume this year to be driven by freight-intensive domestic sectors, such as mining, industrial, manufacturing, infrastructure and engineering goods. With some of the costs remaining steady, the operating margins of operators are expected to improve to 9.0-9.5 % this year.

Next Story
Real Estate

MARC Auditorium

Spanning 80 acre on the outskirts of Bengaluru, the Manipal Academy of Higher Education (MAHE) recently inaugurated the Dr Ramdas M Pai Convention Hall and Food Court (MARC), a 123,000-sq-ft facility comprising a 1,200-seater auditorium above and a two-level food court below.Elaborating on the design framework, Akshay Heranjal, Co-Founder and Principal Architect, The Purple Ink Studio, remarks, “The design programme included two distinct facilities: a food court spanning two (lower) levels and a 1,200-seater auditorium positioned above. A rectangular soft enclosure of a p..

Next Story
Infrastructure Transport

Ceigall 2.0 has begun and the journey ahead looks promising

"We are a nearly 23-year-old company and if I had to define Ceigall, it’s simple – what comes on the road, we build it,” said Ramneek Sehgal, Managing Director of Ceigall India, which is known for its ability to deliver complex projects on time, such as the successful completion of the Katra Expressway. “Ceigall is making its mark in India's construction landscape. From highways, expressways and elevated roads to railways, metro railways, runways and tunnels – you name it, we do it. Beyond roads, we’re also into utilities and solar energy projects. We've already installed thre..

Next Story
Infrastructure Urban

Hyderabad Ranked Fastest Growing City for Infra Development

Hyderabad has emerged as the fastest-growing city in India among the top six, excelling in key areas such as governance, socio-economic profile, physical infrastructure, and real estate. According to the latest India Prime City Index report by Knight Frank India, the city has experienced remarkable growth, driven by extensive infrastructure projects, a surge in real estate demand, and a rising population of ultra-high-net-worth individuals (UHNWIs) and high-net-worth individuals (HNWIs). Proactive policy initiatives have also played a role in enhancing the city’s socio-economic landscape. F..

Hi There!

"Now get regular updates from CW Magazine on WhatsApp!

Join the CW WhatsApp channel for the latest news, industry events, expert insights, and project updates from the construction and infrastructure industry.

Click the link below to join"

+91 81086 03000