Business
Toll Road Operators Predicted To See 9-11 Per Cent Revenue Growth in 2023-24: Report
Swarajya Staff
Mar 30, 2023, 02:32 PM | Updated 02:30 PM IST
Save & read from anywhere!
Bookmark stories for easy access on any device or the Swarajya app.
According to the CRISIL report, toll road operators are expected to experience a decrease in top line growth in the range of 9-11 per cent for the year 2023-24, which is lower than the impressive revenue growth of 16-18 per cent projected for the current fiscal year.
This fiscal year's growth is attributed to a substantial hike in toll rates due to inflation and an increase in traffic on national highways.
However, the revenue will moderate to 9-11 per cent in FY24 due to falling inflation and a possible moderation in traffic growth, according to the statement.
A study of 49 toll road assets in 14 states found that toll collections and balance sheet liquidity will help toll road operators maintain a strong credit profile.
Anand Kulkarni, a director at the agency, has stated that toll road operators' revenue is expected to surge in fiscal year 2023. This will be propelled by a significant toll rate hike of 10.5 per cent, based on wholesale price inflation, reports The Economic Times.
Traffic growth is expected to remain robust at a rate of 5-7 per cent, although on a low base of fiscal year 2022.
Traffic is anticipated to slow down to 4-6 per cent growth in fiscal year 2024, yet it will still surpass the four-year average compound annual growth rate of 2-3 per cent seen through fiscal year 2022.
The report states that the growth of traffic is tied to real GDP growth, which is projected to drop from 7 per cent to 6 per cent in financial year 2024.
Save & read from anywhere!
Bookmark stories for easy access on any device or the Swarajya app.
Introducing ElectionsHQ + 50 Ground Reports Project
The 2024 elections might seem easy to guess, but there are some important questions that shouldn't be missed.
Do freebies still sway voters? Do people prioritise infrastructure when voting? How will Punjab vote?
The answers to these questions provide great insights into where we, as a country, are headed in the years to come.
Swarajya is starting a project with an aim to do 50 solid ground stories and a smart commentary service on WhatsApp, a one-of-a-kind. We'd love your support during this election season.
Click below to contribute.