BQ Prime’s special research section collates quality and in-depth equity and economy research reports from across India’s top brokerages, asset managers and research agencies. These reports offer BQ Prime’s subscribers an opportunity to expand their understanding of companies, sectors and the economy.
Motilal Oswal Report
VRL Logistics (VRL)’s revenue grew 18% YoY to ~INR7.0b (flat QoQ), largely led by higher volumes. This quarter includes revenue from Goods segment only.
EBITDA margin stood at 16.3% in 4QFY23. The company has taken a price increase and also started bulk diesel procurement from Dec’22. Decent operating performance and lower tax outgo led to 17% YoY jump in APAT to INR610m. During 4QFY23, VRL added 47 new branches; with 184 branches being added in FY23. It aims to add 20-25 branches per quarter in FY24E.
For FY23, revenue stood at INR26.5b (+17.9% YoY), EBITDA margin stood at 15.2% (-280bp YoY) and APAT was at INR 1.7b (+9.2% YoY).
With the sale of the Bus and Wind energy business, VRL has now become a pure play Goods Transport (GT) operator. With addition of trucks in FY23, its total capacity has increased to 82,657 tonnes. Management has recently announced capex of INR4.8b, which would also be completed by end-FY24.
VRL is not looking to increase freight rates as it is focusing on volumes and gaining market share by adding new branches. We raise our FY25E EPS by ~10% to factor in strong volume growth, expansion of branch network and improved industry outlook. Reiterate BUY with a revised TP of INR840 (based on 25x FY25E EPS).
Click on the attachment to read the full report:
DISCLAIMER
This report is authored by an external party. BQ Prime does not vouch for the accuracy of its contents nor is responsible for them in any way. The contents of this section do not constitute investment advice. For that you must always consult an expert based on your individual needs. The views expressed in the report are that of the author entity and do not represent the views of BQ Prime.
Users have no license to copy, modify, or distribute the content without permission of the Original Owner.
RECOMMENDED FOR YOU
![](https://images.assettype.com/bloombergquint/2021-11/fea0f747-f3bc-4df9-8ef3-f751fd1b13be/VRL__Logistics_Ltd__transport_fleet__Image_Company_website_.png?rect=0%2C0%2C3500%2C1969&auto=format%2Ccompress&format=webp&w=75)
VRL Logistics - Recent Price Hike To Support Margins; Branch Expansion To Drive Volume Growth: Motilal Oswal
![timelogo](/images/amp-time.png)
![](https://images.assettype.com/bloombergquint/2022-05/6c87fe85-0677-4321-a35e-aec31144b3e3/A_national_highway_project_in_Andhra_Pradesh_carried_out_by_Dilip_Buildcon_Ltd___Source_Company_webs.png?rect=0%2C0%2C3500%2C1969&auto=format%2Ccompress&format=webp&w=75)
Dilip Buildcon Q1 Results Review - Good Year: IDBI Capital
![timelogo](/images/amp-time.png)
![](https://images.assettype.com/bloombergquint/2020-11/4458175a-55ed-4b81-98a9-708f6218af24/TCI_Express_Ltd___image_Company_website_.png?rect=0%2C0%2C3500%2C1969&auto=format%2Ccompress&format=webp&w=75)
TCI Express Q1 Results Review - Low Volumes Result In Subdued Performance: ICICI Securities
![timelogo](/images/amp-time.png)
![](https://images.assettype.com/bloombergquint/2023-02/5ea50266-2fb6-42b5-9959-533829e2cb17/VRL_Logistics_Ltd___Source_Company_official_fb_page_.png?rect=0%2C0%2C3500%2C1969&auto=format%2Ccompress&format=webp&w=75)
VRL Logistics Q1 Review- Labor Shortage Due To Elections Hits Tonnage; Volume Likely To Improve: Motilal Oswal
![timelogo](/images/amp-time.png)