ICICI Securities: VRL Logistics Will Benefit From Sector Consolidation

BQ Blue’s special research section collates quality and in-depth equity and economy research reports from across India’s top brokerages. These reports offer BloombergQuint’s subscribers an opportunity to expand their understanding of companies, sectors and the economy..ICICI Securities Report.VRL Logistics Ltd. has reported better-than-expected Q1 FY21 earnings.Goods transport has reported better than expected topline with approximately 5% QoQ price increase; full impact of diesel price hikes will be felt in Q2 FY21.What impressed us is cost control. Despite 70% YoY decline in revenues, the company could maintain gross margins of 22% (against 35% YoY) – this is impressive because of the asset-heavy model VRL Logistics operates.Employee costs have also been controlled, down 28% YoY. The current environment is conducive for VRL Logistics to roll-back some of the measures instituted around demonetisation i.e getting significant part of drivers and Hamaali workforce in the payroll.Net debt remains under control; and the stress in leveraged/unorganised segment remains the key competitive advantage for VRL Logistics..Click on the attachment to read the full report:.DISCLAIMERThis report is authored by an external party. BloombergQuint 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 brokerage and do not represent the views of BloombergQuint. .Users have no license to copy, modify, or distribute the content without permission of the Original Owner.

ICICI Securities: VRL Logistics Will Benefit From Sector Consolidation

ICICI Securities: VRL Logistics Will Benefit From Sector Consolidation

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