VRL Logistics Q1 Review - Volume Growth Can Lead To Earnings Upside: ICICI Securities
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ICICI Securities Report
VRL Logistics Ltd. reported lower than expected Q1 FY22, with Ebitda margin of ~8.6% vis-a-vis 16% QoQ.
There has been a sharp increase in diesel prices (procured diesel prices for the company went up 6.3% to Rs 84/litre), yet VRL Logistics could maintain gross margin at 30.8% (31.9% QoQ).
This has been helped with the decrease in lorry hire charges, hamaali, rent etc.
Goods transportation segment witnessed ~ 28% QoQ decline in volumes and 2% QoQ decline in realisations (change in route mix).
Number of goods transportation vehicles have increased by 54 (nine electric vehicles) during Q1 FY22.
The company has also ordered 15-20 busses; new additions targetted profitable routes for continuity of service.
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