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Shriram Transport expects growth rate in Q3FY19 to decline due to lower festive season demand

Shriram Transport is expecting its growth rate to decline in the third half of FY19, said Umesh Revankar, managing director of the transport finance company, citing lower demand during the festive season.
“Growth rate definitely has slowed down and the indication of that is available because normally pre-Diwali or during Diwali, the sales are reasonably higher. This time we have not seen that kind of a demand for the buying of new vehicles. Post Diwali normally next 15-20 days, economy goes slow because of the leaves or because many of producers don’t move to the market and December is the time when producers move to the market and we have seen some growth in December but November was a little dull and sales were lower from the rural side. Even in the urban area, we saw lesser infrastructure activity than normal,” said Revankar.
“As far as the equipment lending is concerned, tractor or harvester, the farmers are very clear that it is not linked to the crop loan ... here and there, there could be some local leaders trying to take advantage of it but it is not a general phenomenon, we have not faced any challenges in lending to the equipment,” he added.