Election Impact: Mining Equipment Sales to Decline
Equipment

Election Impact: Mining Equipment Sales to Decline

"The sales volumes of the domestic mining and construction equipment (MCE) industry are projected to experience a downturn in FY2025, following two consecutive years of robust growth. According to ICRA, after achieving a remarkable 26 percent growth in FY23 and 24 percent in FY2024, a decline of 12 to 15 percent in sales is anticipated for FY25, translating into volumes of 1.14-1.18 lakh units.

The anticipated reversal in this growth trajectory is primarily attributed to a slowdown in new project award activity during Q4 FY2024 and Q1 FY2025. The Model Code of Conduct, enforced during the Parliamentary Elections scheduled for April-May 2024, is expected to hamper project awarding activity, impacting the MCE industry.

The disruption in project awarding activity over the past two quarters has been noted. Ritu Goswami, Sector Head of corporate Ratings at ICRA, stated, ?Pre-election acceleration in project execution by the Government generated significant demand momentum for the MCE industry in the past two years. However, with the likely disruption in project award activity for two consecutive quarters during Q4 FY2024 and Q1 FY2025 amidst the Parliamentary Elections, and the monsoon-related effects on construction activities in Q2, the first half of FY2025 is anticipated to witness a moderation in sales.?

Despite the near-term challenges in the domestic MCE demand environment, the industry's long-term prospects remain promising. This is attributed to the sustained government focus on infrastructure development. Furthermore, a rebound in volumes is anticipated in H2, driven by a resurgence in new project awards starting Q3 and partially supported by pre-buying due to the CEV-V emission norm transition scheduled for January 2025."

The sales volumes of the domestic mining and construction equipment (MCE) industry are projected to experience a downturn in FY2025, following two consecutive years of robust growth. According to ICRA, after achieving a remarkable 26 percent growth in FY23 and 24 percent in FY2024, a decline of 12 to 15 percent in sales is anticipated for FY25, translating into volumes of 1.14-1.18 lakh units. The anticipated reversal in this growth trajectory is primarily attributed to a slowdown in new project award activity during Q4 FY2024 and Q1 FY2025. The Model Code of Conduct, enforced during the Parliamentary Elections scheduled for April-May 2024, is expected to hamper project awarding activity, impacting the MCE industry. The disruption in project awarding activity over the past two quarters has been noted. Ritu Goswami, Sector Head of corporate Ratings at ICRA, stated, ?Pre-election acceleration in project execution by the Government generated significant demand momentum for the MCE industry in the past two years. However, with the likely disruption in project award activity for two consecutive quarters during Q4 FY2024 and Q1 FY2025 amidst the Parliamentary Elections, and the monsoon-related effects on construction activities in Q2, the first half of FY2025 is anticipated to witness a moderation in sales.? Despite the near-term challenges in the domestic MCE demand environment, the industry's long-term prospects remain promising. This is attributed to the sustained government focus on infrastructure development. Furthermore, a rebound in volumes is anticipated in H2, driven by a resurgence in new project awards starting Q3 and partially supported by pre-buying due to the CEV-V emission norm transition scheduled for January 2025.

Related Stories

Gold Stories

Next Story
Products

Koemmerling opens Navi Mumbai experience centre

Koemmerling, a brand of the profine Group, has expanded its presence in the Mumbai metropolitan region with the opening of a new experience centre in Navi Mumbai and launched its Allure S46 minimal sliding door system for the Indian market.Located in CBD Belapur, the facility was inaugurated by Peter Mrosik, Owner and CEO, profine Group, along with Farid Khan, Chairman and Managing Director, profine India, and Kamal Bajaj, CEO, profine India.The company said the new centre will showcase its portfolio of uPVC and aluminium window and door systems to architects, developers and homeowners.The ina..

Next Story
Products

India's waterproofing market nears Rs 150 bn milestone

India's waterproofing industry is approaching a market size of Rs 150 billion and is expected to surpass the $2 billion milestone, according to speakers at the 2nd India International Waterproofers Conference & Expo 2026 organised by the Waterproofers Association of India (WAI) in New Delhi.The two-day event brought together more than 20 speakers, 55 international delegates and 53 exhibition booths, with discussions focusing on climate-resilient construction, advanced waterproofing technologies and international collaboration.Inaugurating the event, Durga Shanker Mishra, former Secretary, ..

Next Story
Real Estate

Dilip Buildcon Q1 FY27 Revenue at Rs 23.78 billion

Dilip Buildcon Limited reported consolidated revenue from operations of Rs 2,378 crore in Q1 FY27, along with EBITDA of Rs 429 crore and profit after tax of Rs 128 crore.Consolidated EBITDA margin stood at 18.1%, improving from 17.1% in Q4 FY26. On a standalone basis, revenue from operations was Rs 1,930 crore, EBITDA stood at Rs 199 crore and PAT was Rs 39 crore, with an EBITDA margin of 10.3%.The company’s order book stood at Rs 27,691 crore as of 30 June 2026, compared with Rs 28,830 crore as of 31 March 2026. Roads and highways accounted for 17.1% of the order book, irrigation and water ..

Advertisement

Subscribe to Our Newsletter

Get daily newsletters around different themes from Construction world.

STAY CONNECTED

Advertisement