The Indian logistics industry is expected to grow by 9-10 per cent per annum, according to an ICRA note. While there have been fluctuations in the economy and freight demand due to GST implementation, the impact of the same would be temporary and would be corrected over the near term. Analysis of the first quarter FY18 performance of key listed logistics companies indicate that their revenue growth at 6.2 per cent (on Y-o-Y basis) outpaced the real GDP growth, much of it was supported by increase in freight rates since the latter half of FY17, while volume growth remained flat for most of the companies. In addition, companies have benefited from the underlying sectors such as automobile, consumer durables, etc., which have bucked the economic slowdown trend. From a profitability perspective, while the aggregate operating profit margins improved marginally on a sequential basis to 9.7 per cent during the first quarter of FY18, there was pressure on the margins on a Y-o-Y basis.