Revenue for the domestic construction equipment sector is expected to grow 14-15% in FY24: Crisil Ratings
- IBEF
- October 16, 2023
Crisil Ratings stated that the government's emphasis on infrastructure will drive a 14-15% growth in the domestic construction equipment sector's revenue in FY24. According to the statement, mining and real estate-related construction activity will also be beneficial.
The domestic construction equipment sector is expected to see revenue growth of 14-15% this fiscal year, building on a strong foundation of 29% growth the previous year. The agency stated in a statement that "this will be driven by continued government focus on infrastructure build-out, especially roads, metros, and railways, including projects under the National Infrastructure Pipeline (NIP)".
The increased pace of road development, which supplies 40% of the demand for construction equipment, is encouraging for the industry's expansion.
Furthermore, with the industry transitioning to CEV Stage-V2 emission standards on April 1, 2024, which will raise equipment prices, some pre-purchasing of equipment is also expected towards the end of the current fiscal year.
In terms of volume, the industry is expected to reach a record-breaking sales level of 1.2 lakh units during this fiscal year, up from 1.1 lakh units in FY23.
According to the report, material handling and concrete equipment made up the remaining 22% of sales volume, whereas earthmoving equipment accounted for 70% of sales volume in the previous fiscal year.
Disclaimer: This information has been collected through secondary research and IBEF is not responsible for any errors in the same.
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