MOSL: THE CORNER OFFICE (VRL LOGISTICS) — Healthy tonnage growth likely in 2HFY18-Efficiency gains offset impact of diesel cost increase
​THE CORNER OFFICE (VRL LOGISTICS) — Healthy tonnage growth likely in 2HFY18; Efficiency gains offset impact of diesel cost increase
Mr Sunil Nalavadi — Chief Financial Officer
Mr Sunil Nalavadi holds a bachelor’s degree in commerce from the Karnataka University, Dharwad and is a qualified associate of the Institute of Chartered Accountants of India. He has been associated with the Company since March 31, 2005 and is currently in charge of the finance, taxation and accounting functions of the Company.
- VRL Logistics (VRLL) is likely to record healthy volume growth in 2HFY18, led by a favorable base and restocking post GST implementation.
- Margins are likely to remain stable, as the impact of higher diesel prices has been offset by efficiency gains due to smooth movement of trucks.
- The share of less than truckload (LTL) model is likely to increase in overall cargo transportation due to realignment of warehouses for efficient movement of cargo.
- The E-Way Bill will be gradually rolled out to all Indian states (implemented in eight states currently) by end-March 2018.
- Our view: We believe the shift in trade from the unorganized to organized segment will gather pace post March-18, as clarity emerges over efficiency gains from GST implementation. The lead distance of LTL segment is likely to increase, led by realignment of warehouses to the hub & spoke model..
VRL Logistics Limited is engaged in goods transportation and passenger transportation. The Company offers logistics services dealing in domestic transportation of goods. It is also engaged in bus operations, air chartering service, sale of power and sale of certified emission reductions (CER) units generated from operation of wind mills. Its segments include Goods transport, Bus operations, Sale of power and Air chartering service. It provides less than truckload services (LTL) for general and priority parcels, and caters to a range of industries, including fast-moving consumer goods (FMCG), textiles, apparel, furniture, metal and metal products, and automotive parts. It also offers full truck load (FTL), car carrying, priority cargo and courier services. Its bus service network covers Karnataka, Maharashtra, Goa, Andhra Pradesh, Telangana, Tamil Nadu, Gujarat and Rajasthan. Its wind farm consists of over 35 wind turbine generators (WTGs) having individual capacity of 1.25 megawatt.
Motilal Oswal Financial Services Ltd. is a reputed name in Financial Services and Online Trading with group companies providing services such as Private Wealth Management, Retail Broking and Distribution, Institutional Broking, Asset Management, Investment Banking, Private Equity, Commodity Broking, Currency Broking, Principal Strategies & Home Finance.
Motilal Oswal Securities is a group company of Motilal Oswal Financial Service Limited which started as a stock trading company and has blossomed into well diversified firm offering a range of financial products and services. Motilal Oswal has built a reputation as the source for best stock trading company and this has taken a wealth of experience, knowledge and expertise, constantly working in tandem, over the years.
Unfortunately, this report is not available for the investor type or country you selected.
Browse all ResearchPool reportsReport is subscription only.
Thank you, your report is ready.
Thank you, your report is ready.