NEMO Selects Tenova for Louisiana DRI Plant Nippon Steel Returns to Profit in Q1 JFE Steel Produces Iron Using Green Hydrogen
Domestic mining and construction equipment (MCE) industry volumes may fall in the current fiscal year, according to rating agency ICRA, due to a slowdown in new project orders ahead of the Lok Sabha elections and a monsoon-related impact on construction activity.
"ICRA expects FY2025 to see a 12-15% y-o-y decline (which translates into volumes of 114,000-118,000 units)," the rating agency said in a statement.
This decline comes after two years of robust growth (26% in FY23 and 24% in FY24). The reversal in this growth trend will be caused by a slowdown in new project award activity in Q4 FY2024 and Q1 FY2025, as the Model Code of Conduct will be in effect during the Parliamentary Elections in April-May 2024.
"Additionally, the aggregate revenues for ICRA's sample set companies are expected to contract by 9-12% and operating margins by 100-150 basis points in FY2025," the statement said.
The re-election push by the government on project execution led to a strong demand momentum for the domestic mining and construction industry in the last two years.
However, with a likely disruption in project award activity for two consecutive quarters -- in the fourth quarter of FY'24 and the first quarter of FY'25, amidst the Lok Sabha elections and monsoon-related impact on construction activities in the second quarter, the first half of FY'25 is likely to see a moderation in sales, Ritu Goswami, Sector Head, Corporate Ratings, ICRA said.
Also Read : Ukraine’s Flat Steel Export Drop May Open Opportunities for Indian Steelmakers NMDC Sees 18% Jump in Iron Ore Production in February
The Union Budget for the financial year 2024-25 may bring some relief on the minimum threshold, inpu...
Small Enterprises 11-Jan-2024
The growth of eight key infrastructure sectors slowed to a 15-month low of 3.6% in January, on accou...
Business 29-Feb-2024
India's coal-fired generators have managed to amass record stocks of fuel for the end of February, e...
Raw Material 29-Feb-2024
Russian steelmaker Severstal has completed hot tests at its upgraded slitting line No. 10 at the Che...
Europe 04-Jul-2026
Tata Steel CEO T.V. Narendran Set to Join Tata Sons Board: Report Tata Steel’s Global CEO and...
Large Corporate 11-Sep-2025
The renewable energy sector in India is facing issues with budgeting and rising expenses due to the...
Renewables 10-Jun-2024