11 August 2022
1QFY23 Results Update | Sector: Logistics
VRL Logistics
Estimate change
TP change
Rating change
CMP: INR604
TP: INR800 (+32%)
Buy
Robust volume growth continues
New branch additions to drive growth ahead
Bloomberg
Equity Shares (m)
M.Cap.(INRb)/(USDb)
52-Week Range (INR)
1, 6, 12 Rel. Per (%)
12M Avg Val (INR M)
VRLL IN
91
53.4 / 0.7
719 / 297
-17/15/90
186
Financial Snapshot (INR b)
Y/E MARCH
Sales
EBITDA
Adj. PAT
EBITDA Margin (%)
Adj. EPS (INR)
EPS Gr. (%)
BV/Sh. (INR)
Ratios
Net D:E
RoE (%)
RoCE (%)
Payout (%)
Valuations
P/E (x)
P/BV (x)
EV/EBITDA(x)
Div. Yield (%)
FCF Yield (%)
2022
23.9
4.0
1.6
16.9
18.1
255.3
73.8
0.2
25.6
24.0
44.1
33.3
8.2
13.6
1.3
3.6
2023E
28.5
4.8
2.1
16.8
24.0
32.1
91.7
0.2
28.9
25.3
25.1
25.2
6.6
11.5
1.0
1.9
2024E
34.1
5.8
2.5
17.0
28.4
18.4
114.1
0.1
27.6
23.1
21.2
21.3
5.3
9.3
1.0
3.9
VRL Logistics (VRL) posted the highest ever quarterly turnover of INR7.17b,
up 73% YoY and 8% QoQ (8% above our estimate). Goods Transport (GT)
revenue grew 58% YoY driven by 45% YoY volume growth.
The Bus Operations business, which was hurt by COVID-led restrictions, also
recovered sharply with revenue surging ~4.6x YoY to ~INR980m.
EBITDA margin stood at 16.0% (+720bp YoY, -290bp QoQ) as against our
estimate of 18.7%. EBITDA was at INR1.1b (v/s our estimate of INR1.2b).
Decent operating performance and lower depreciation drove APAT, which
stood at INR494m (in line with our estimate).
Starting 1QFY23, VRL has revised the useful life of GT vehicles to 15 years
from 8.8 years, resulting in lower depreciation expenses of INR93m in
1QFY23. The company added 68 new branches in 1Q (91 added in FY22).
With robust industry outlook and aggressive branch addition, VRL is on track
to clock a high double-digit volume growth in GT segment. Margin is likely to
remain strong at 16-17% level driven by the Goods segment. Depreciation is
projected to be lower than estimated with the change in useful life of assets.
We raise our FY23E/FY24E EPS by 5%/9%, respectively, to factor in lower
depreciation expense. We maintain our BUY rating with a revised TP of
INR800 (premised on 28x FY24E EPS), implying 32% upside potential.
Significant jump in Bus Operations revenue in 1QFY23 was primarily due to
good holiday season and resumption of travel activities post-COVID.
Management has indicated that revenue from this vertical would stabilize at
INR600-650m per quarter going forward.
VRL has not taken any rate hike despite the rise in diesel costs in 1QFY23 in
order to gain higher market share and focus on volumes.
Wind power business was recently sold for INR480m and VRL has received
full consideration in Aug’22. This would be utilized towards capex.
The management expects a tonnage growth of 20% and margin of 17% for
the GT segment in FY23. VRL has a net debt of INR1.5b currently. Debt levels
are expected to be at similar levels during end-FY23.
We expect VRL to clock 18% volume CAGR in GT segment over FY22-24, with
faster addition of branches in untapped regions. With robust volume and
cost efficiency measures, we expect blended EBITDA margin to remain
healthy at 16-17% over the next two years.
We raise our FY23E/FY24E EPS by 5%/9%, respectively, to factor in lower
depreciation expense.
We expect VRL to clock revenue/EBITDA/PAT CAGR
of ~19%/20%/25% over FY22-24, respectively.
Maintain BUY with a revised
TP of INR800 (premised on 28x FY24E EPS), implying 32% upside potential.
Highlights from the management commentary
Valuation and view
Shareholding pattern (%)
As On
Promoter
DII
FII
Others
Jun-22 Mar-22 Jun-21
69.6
69.6
69.6
13.6
15.1
18.5
5.4
3.6
2.2
11.5
11.7
9.7
FII Includes depository receipts
Alok Deora - Research analyst
(Alok.Deora@motilaloswal.com)
Investors are advised to refer through important disclosures made at the last page of the Research Report.
3 September 2019
1
MotilalOswal research is available on www.motilaloswal.com/Institutional-Equities, Bloomberg, Thomson Reuters, Factset and S&P Capital.
 Motilal Oswal Financial Services
VRL Logistics
Quarterly performance
Y/E March (INR m)
1Q
Net Sales
YoY Change (%)
EBITDA
Margin (%)
YoY Change (%)
Depreciation
Interest
Other Income
PBT before EO expense
Extra-Ord expense
PBT
Tax
Rate (%)
Reported PAT
Adj PAT
YoY Change (%)
Margins (%)
E: MOFSL Estimates
4,138
158.5
361
8.7
-206.5
377
95
35
-76
0
-76
-16
20.5
-60
-60
NA
-1.5
FY22
2Q
6,364
44.9
1,133
17.8
30.3
396
98
18
657
0
657
162
24.7
495
495
60.2
7.8
3Q
6,784
20.4
1,290
19.0
30.6
444
118
49
778
0
778
173
22.2
605
605
52.2
8.9
4Q
6,651
10.8
1,258
18.9
31.5
463
120
66
741
0
741
179
24.2
562
562
51.2
8.4
1Q
7,171
73.3
1,144
16.0
217.2
390
123
30
661
0
661
167
25.3
494
494
NA
6.9
FY23
2QE
6,746
6.0
1,110
16.5
-2.1
400
130
45
625
0
625
157
25.2
467
467
-5.6
6.9
3QE
7,734
14.0
1,322
17.1
2.5
400
140
45
827
0
827
209
25.2
619
619
2.3
8.0
4QE
6,862
3.2
1,210
17.6
-3.8
400
159
65
716
0
716
180
25.2
536
536
-4.7
7.8
23,936
35.8
4,042
16.9
63.3
1,680
431
168
2,099
0
2,099
498
23.7
1,601
1,601
255.3
6.7
28,512
19.1
4,786
16.8
18.4
1,590
552
185
2,829
0
2,829
713
25.2
2,116
2,116
32.1
7.4
FY22
FY23E
FY23
1QE
6,620
60.0
1,238
18.7
243.2
480
130
45
673
0
673
170
25.2
503
503
NA
7.6
INR m
Var.
v/s Est
8
(8)
(2)
(2)
(2)
(2)
The 1QFY23 performance in charts
Exhibit 1: Revenue up 73% YoY
Revenue (INR b)
Revenue Growth YoY (%)
158.5
2.1 1.3 1.1 -2.9
-70.3 -16.1
1.1 20.6
44.9 20.4 10.8 73.3
16.5 14.0 14.311.4
0.9 0.7 0.8 0.6
5.4 5.2 5.6 5.0 1.6 4.4 5.6 6.0 4.1 6.4 6.8 6.7 7.2
-21.2
-0.3
19.0 18.9 16.0
19.8 17.5
15.9
8.7 17.8
0.9 1.0 1.0 0.4 1.1 1.3 1.3 1.1
Exhibit 2: Margin contracts QoQ with high diesel price
EBITDA (INR m)
EBITDA Margin YoY (%)
Source: Company, MOFSL
Source: Company, MOFSL
Exhibit 3: PAT and margin trends
APAT (INR m)
5.1 6.6 4.6
NPM (%)
Exhibit 4: Higher fuel costs drag margins in 1QFY23
Gross Margin (%)
35.3 33.5 32.9 31.9
22.3
37.8 33.7 31.6
EBITDA Margin (%)
30.2 32.8 34.1
35.6
31.9
309
7.8 8.9 8.4 6.9
7.1 6.2
7.0
0.4
-1.5
397
372
495
605 562
494
275 347 258 21
-60
-627
-39.2
16.5 14.0 14.3 11.4
-21.2
19.8 17.5 15.9
8.7
17.8 19.0 18.9 16.0
Source: Company, MOFSL
Source: Company, MOFSL
11 August 2022
2
 Motilal Oswal Financial Services
VRL Logistics
Exhibit 5: Segmental performance
2QFY21
Segment Revenue (INR m)
Goods Transport
Bus Operations
Sale of Power
Transport of passengers by air
Net segment Revenue
Growth YoY (%)
Goods Transport
Bus Operations
Sale of Power
Transport of passengers by air
Net segment Revenue
Revenue Share
Goods Transport
Bus Operations
Sale of Power
Transport of passengers by air
Total Revenue Share
Segment Results (EBIT) - (INR m)
Goods Transport
Bus Operations
Sale of Power
Transport of passengers by air
Total Segment Results
Segmental EBIT Margin (%)
Goods Transport
Bus Operations
Sale of Power
Transport of passengers by air
Total
4,077
168
76
38
4,358
-5.6
-77.5
-21.1
-26.7
-16.4
94
4
2
1
100
558
-54
37
6
547
13.7
-32.2
49.3
14.9
12.6
3QFY21
5,010
521
31
40
5,603
10.7
-44.9
38.3
-22.9
1
89
9
1
1
100
711
17
-12
-32
684
14.2
3.2
-36.8
-78.7
12.2
4QFY21
5,358
561
21
29
5,969
28.6
-20.5
6.6
-30.9
21
90
9
0
0
100
696
-92
-23
-4
577
13
-16.5
-107.6
-14
9.7
1QFY22
3,848
176
55
35
4,114
159.6
231.8
15.7
225.7
158.1
94
4
1
1
100
145
-71
12
-10
76
3.8
-40.5
21.5
-27.3
1.8
2QFY22
5,688
503
86
37
6,314
39.5
199.5
13.5
-1.6
44.9
90
8
1
1
100
793
-28
42
4
811
13.9
-5.7
48.9
11.6
12.8
3QFY22
5,961
748
21
16
6,747
19
43.6
-33
-59.9
20.4
88
11
0
0
100
927
78
-23
-20
962
15.6
10.4
-109.5
-123.5
14.3
4QFY22
5,876
622
90
23
6,611
9.7
10.7
332
-22.2
10.7
89
9
1
0
100
841
9
44
3
897
14.3
1.5
48.8
13.5
13.6
1QFY23
6,089
979
49
0
7,116
58.2
457
-11.4
-100
73
86
14
1
0
100
695
170
5
-
871
11.4
17.4
10.3
-
12.2
Source: Company, MOFSL
Highlights of the management commentary
Operational highlights
There were 0.4m customers of VRL during pre-Covid which has increased to
0.7m currently. Addition of new customers is expected to continue as new
branches are being opened.
VRL has opened 68 branches in 1QFY23 taking total number of branches to
1,023 as of June-22. Company plans to open 25-30 branches per quarter.
Govt. will mandate e-invoicing for businesses of turnover of INR1b and above
(current limit of INR2b). Therefore compliance regulations are increasing which
is supporting organized players.
With greater efficiencies and higher volumes, breakeven for new branches has
decreased from 9 months to 2-3 months.
Goods Transport segment
GT revenue increased by 58% YoY in 1QFY23 with increase in tonnage by 45%
and balance from change in realization. GT segment realization decreased by 2%
QoQ in 1QFY23 due to discounts on the new routes.
Diesel cost increased from 29% of revenue in 4QFY22 to 31% of revenue in
1QFY23.
Company had to procure fuel from retail outlets as there was an increase in
rates for bulk purchase of Diesel from refineries resulting in higher diesel costs.
11 August 2022
3
 Motilal Oswal Financial Services
VRL Logistics
Retail procurement increased from 74% in Q4FY22 to 99% in Q1FY23. Hence,
VRL lost on savings of ~INR2/liter
Lorry hire expenses as a percent of revenue increased by ~200bp from 7.4% in
4QFY22 to 9.4% in 1QFY23 on account of increased vehicle hiring costs driven by
increase in fuel rates and kms run by hired vehicles.
Vehicle maintenance cost as a percentage of revenue decreased from 7% in
4QFY22 to 6.1% in 1QFY23.
Company hasn’t taken any freight rate hike in 1QFY23 to gain market share and
bring in higher volumes.
VRL is reaching breakeven for the new branches in 2-3 months. The new
branches added in FY22 and 1QFY23 contributed ~8% to the overall tonnage in
1QFY23.
Bus operations segment
Bus Operations reported revenue of INR 980m in 1QFY23 registering a growth of
~4.6 times YoY and 57% QoQ.
Significant jump in revenue from bus operations was primarily due to increase in
number of passengers travelled, average seat occupation and number of trips
due to holiday season. However, going forward, revenue per quarter will be in
the range of INR 600m-650m.
Number of buses increases from 295 in 4QFY22 to 297 in June-22
Realization per passenger increased by 27% QoQ and 18% YoY
Sale of assets
VRL completed the sale of its wind power business for INR 480mn in Aug-22, and
plans to utilize entire proceeds towards capex in FY23
Capex plan
Capex was INR850m in 1QFY23 which was towards addition of new vehicles in
GT vertical. VRL expects to incur INR3-3.5b of Capex during FY23.
VRL has a net debt of INR1.5b currently and expects to keep debt levels in the
range of INR 1.3-1.4b in FY23.
Guidance
for FY23
The management expects a tonnage growth of 20% in for next three years
Revenue growth of 25% and Margins would be 17% for the GT segment in FY23.
Company expects to clock 20% return on invested capital
Valuation and view
We expect VRL to clock 18% volume CAGR over FY22-24, with faster addition of
branches in untapped regions. With robust volume and cost efficiency
measures, we expect its EBITDA margin to remain healthy at 16-17% over next
two years.
We raise FY23E/FY24E EPS by 5%/9% to factor in lower depreciation expense.
We expect VRL to clock revenue/EBITDA/PAT CAGR of ~19%/20%/25% over
FY22-24E, respectively. We maintain our BUY rating with revised TP of INR800
(28x FY24E EPS), implying 32% upside.
11 August 2022
4
 Motilal Oswal Financial Services
VRL Logistics
Exhibit 6: Revised forecast
(INR m)
Net Sales
EBITDA
EBITDA Margin (%)
PAT
EPS (INR)
Rev
28,512
4,786
16.8
2,116
24
FY23E
Old
28,589
5,068
17.7
2,013
22.8
Chg(%)
-0.3
-5.6
-93.9bps
5.1
5.1
Rev
34,074
5,796
17.0
2,506
28.4
FY24E
Old
Chg(%)
33,717
1.1
5,879
-1.4
17.4
-43bps
2,293
9.3
26
9.3
Source: Company, MOFSL
Financial story in charts
Exhibit 7: Share of GT has increased over the last few years
Goods Transport (GT)
3%
18%
Exhibit 8: Shift to organized operators to drive revenue
(INR b)
Bus Transport
2%
18%
2%
16%
2%
7%
3%
18%
2%
19%
Others
2%
9%
Revenue
Revenue Growth (RHS)
35.8
(%)
19.5
6.6
9.7
0.4
(16.8)
19.1
79%
79%
79%
80%
81%
90%
89%
19.2
FY16
FY17
FY18
FY19
FY20
FY21
FY22
FY18
21.1
FY19
21.2
FY20
17.6
FY21
23.9
FY22
28.5
FY23E
34.1
FY24E
Source: Company, MOFSL
Source: Company, MOFSL
Exhibit 9: Margin to improve with higher volumes
(INR b)
EBITDA
14.1
11.6
EBITDA Margin (RHS)
16.9
14.0
12.2
16.8
(%)
17.0
Exhibit 10: Strong operating performance to drive PAT
(INR m)
Net Profit
PATM (RHS)
6.7
4.8
4.4
4.3
2.6
7.4
(%)
7.4
2.3
FY18
2.4
FY19
3.0
FY20
2.5
FY21
4.0
FY22
4.8
FY23E
5.8
FY24E
926
FY18
919
FY19
901
FY20
451
FY21
1,601
FY22
2,116
FY23E
2,506
FY24E
Source: Company, MOFSL
Source: Company, MOFSL
Exhibit 11: Return ratios to be healthy at >20%
RoE
12.8
12.3
RoCE
24.0
25.3
28.9
23.1
Exhibit 12: Comfortable working capital position
Debtor Days
Inventory Days
Creditor Days
Net Working Capital Days (RHS)
19
19
14.2
8.8
25.6
16.3
14.8
14.3
7.4
FY18
FY19
FY20
FY21
FY22
FY23E
27.6
19
18
16
14
15
5 1
FY24E
FY18
14
5 1
FY19
15
5 1
FY20
13
8
3
10
13
7 3
6 3
FY23E
13
15
5 3
FY24E
FY21
FY22
Source: Company, MOFSL
Source: Company, MOFSL
11 August 2022
5
 Motilal Oswal Financial Services
VRL Logistics
Financials and valuations
Income Statement
Y/E March (INR m)
Net Sales
Change (%)
Gross Margin (%)
EBITDA
Margin (%)
Depreciation
EBIT
Int. and Finance Charges
Other Income
PBT
Tax
Effective Tax Rate (%)
Reported PAT
Change (%)
Margin (%)
FY18
19,223
6.6
31.4
2,342
12.2
976
1,366
114
142
1,394
468
33.6
926
31.3
4.8
FY19
21,095
9.7
30.1
2,440
11.6
1,006
1,434
109
79
1,405
486
34.6
919
-0.7
4.4
FY20
21,185
0.4
33.4
2,983
14.1
1,675
1,307
367
103
1,043
142
13.6
901
-2.0
4.3
FY21
17,629
-16.8
33.0
2,475
14.0
1,598
877
368
129
637
187
29.3
451
-50.0
2.6
FY22
23,937
35.8
33.5
4,042
16.9
1,680
2,362
431
168
2,099
498
23.7
1,601
255.3
6.7
FY23E
28,512
19.1
32.5
4,786
16.8
1,590
3,196
552
185
2,829
713
25.2
2,116
32.1
7.4
FY24E
34,074
19.5
32.3
5,796
17.0
1,990
3,806
733
277
3,350
844
25.2
2,506
18.4
7.4
Balance Sheet
Y/E March (INR m)
Equity Share Capital
Total Reserves
Net Worth
Deferred Tax Liabilities
Total Loans
Capital Employed
Gross Block
Less: Accum. Deprn.
Net Fixed Assets
Capital WIP
Total Investments
Curr. Assets, Loans, and Adv.
Inventory
Account Receivables
Cash and Bank Balances
Cash
Bank Balance
Others
Current Liab. and Prov.
Account Payables
Other Current Liabilities
Provisions
Net Current Assets
Application of Funds
FY18
903
5,029
5,932
808
812
7,552
9,044
2,795
6,250
76
1
2,296
241
807
194
185
8
1,054
1,071
68
800
203
1,225
7,552
FY19
903
5,556
6,459
738
1,407
8,604
10,835
3,785
7,051
416
1
2,311
298
795
131
126
5
1,086
1,174
61
849
264
1,136
8,604
FY20
903
5,265
6,169
440
1,893
8,502
15,105
5,202
9,903
44
1
2,304
293
856
134
129
5
1,021
3,750
35
3,368
347
-1,445
8,502
FY21
883
5,088
5,971
440
1,196
7,607
15,850
6,307
9,544
61
1
2,381
395
639
185
183
1
1,162
4,379
136
3,911
332
-1,998
7,607
FY22
883
5,633
6,516
386
1,593
8,496
18,967
7,987
10,980
350
1
2,473
459
673
145
140
5
1,197
5,307
201
4,673
433
-2,834
8,496
FY23E
883
7,219
8,102
386
3,043
11,532
22,067
9,577
12,490
350
1
4,207
469
1,016
1,189
1,184
5
1,533
5,515
234
4,765
516
-1,309
11,532
FY24E
883
9,195
10,078
386
4,493
14,958
24,767
11,567
13,199
350
1
7,252
467
1,214
3,739
3,734
5
1,833
5,844
280
4,948
616
1,408
14,958
11 August 2022
6
 Motilal Oswal Financial Services
VRL Logistics
Financials and valuations
Ratios
Y/E March
Basic (INR)
EPS
EPS growth (%)
Cash EPS
BV/Share
DPS
Payout (Incl. Div. Tax, %)
Valuation (x)
P/E
Cash P/E
EV/EBITDA
EV/Sales
P/BV
Dividend Yield (%)
Return Ratios (%)
RoE
RoCE
RoIC
Working Capital Ratios
Fixed Asset Turnover (x)
Asset Turnover (x)
Inventory (Days)
Debtors (Days)
Creditors (Days)
Leverage Ratio (x)
Net Debt/Equity
FY18
10.2
28.4
21.1
65.7
0.0
0.0
59.0
28.7
23.0
2.8
9.2
0.0
16.3
12.8
11.9
2.2
2.5
5
15
1
0.1
FY19
10.2
-0.7
21.3
71.5
5.5
65.2
59.4
28.3
22.4
2.6
8.4
0.9
14.8
12.3
12.2
2.1
2.5
5
14
1
0.2
FY20
10.0
-2.0
28.5
68.3
7.0
84.6
60.6
21.2
18.5
2.6
8.8
1.2
14.3
14.2
13.8
1.6
2.5
5
15
1
0.3
FY21
5.1
-48.9
23.2
67.6
4.0
78.4
118.4
26.0
22.0
3.1
8.9
0.7
7.4
8.8
7.9
1.1
2.3
8
13
3
0.2
FY22
18.1
255.3
37.1
73.8
8.0
44.1
33.3
16.3
13.6
2.3
8.2
1.3
25.6
24.0
23.5
1.4
2.8
7
10
3
0.2
FY23E
24.0
32.1
41.9
91.7
6.0
25.1
25.2
14.4
11.5
1.9
6.6
1.0
28.9
25.3
26.6
1.4
2.5
6
13
3
0.2
FY24E
28.4
18.4
50.9
114.1
6.0
21.2
21.3
11.9
9.3
1.6
5.3
1.0
27.6
23.1
27.3
1.5
2.3
5
13
3
0.1
Cash Flow Statement
Y/E March (INR m)
OP/(Loss) before Tax
Depreciation
Direct Taxes Paid
(Inc.)/Dec. in WC
Other Items
CF from Operations
(Inc.)/Dec. in FA
Free Cash Flow
Change in Investments
Others
CF from Investments
Inc./Dec.in net worth
Inc./(Dec.) in Debt
Dividends Paid
Others
CF from Fin. Activity
Inc./(Dec.) in Cash
Opening Balance
Closing Balance
FY18
1,394
976
-510
97
98
2,055
-455
1,600
12
0
-442
-387
-1,036
0
-120
-1,543
70
116
185
FY19
1,405
1,006
-523
-64
98
1,922
-2,109
-187
3
15
-2,091
0
596
-381
-104
110
-59
185
126
FY20
1,043
1,675
-431
-94
380
2,573
-1,200
1,373
14
0
-1,185
0
485
-980
-889
-1,384
3
126
129
FY21
637
1,598
-148
294
330
2,711
-330
2,381
15
1
-313
-632
-697
0
-1,014
-2,344
54
129
183
FY22
2,099
1,680
-581
157
353
3,708
-1,808
1,899
4
6
-1,798
0
239
-1,060
-1,132
-1,953
-43
183
140
FY23E
2,829
1,590
-713
25
368
4,099
-3,100
999
0
-69
-3,169
0
1,450
-530
-806
114
1,044
140
1,184
FY24E
3,350
1,990
-844
-159
455
4,793
-2,700
2,093
0
79
-2,621
0
1,450
-530
-542
378
2,550
1,184
3,734
11 August 2022
7
 Motilal Oswal Financial Services
VRL Logistics
NOTES
11 August 2022
8
 Motilal Oswal Financial Services
VRL Logistics
Explanation of Investment Rating
Investment Rating
Expected return (over 12-month)
BUY
>=15%
SELL
< - 10%
NEUTRAL
< - 10 % to 15%
UNDER REVIEW
Rating may undergo a change
NOT RATED
We have forward looking estimates for the stock but we refrain from assigning recommendation
*In case the recommendation given by the Research Analyst is inconsistent with the investment rating legend for a continuous period of 30 days, the Research Analyst shall within
following 30 days take appropriate measures to make the recommendation consistent with the investment rating legend.
Disclosures
The following Disclosures are being made in compliance with the SEBI Research Analyst Regulations 2014 (herein after referred to as the Regulations).
Motilal Oswal Financial Services Ltd. (MOFSL) is a SEBI Registered Research Analyst having registration no. INH000000412. MOFSL, the Research Entity (RE) as defined in the
Regulations, is engaged in the business of providing Stock broking services, Investment Advisory Services, Depository participant services & distribution of various financial
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available on www.motilaloswal.com. MOFSL (erstwhile Motilal Oswal Securities Limited - MOSL) is registered with the Securities & Exchange Board of India (SEBI) and is a
registered Trading Member with National Stock Exchange of India Ltd. (NSE) and Bombay Stock Exchange Limited (BSE), Multi Commodity Exchange of India Limited (MCX) and
National Commodity & Derivatives Exchange Limited (NCDEX) for its stock broking activities & is Depository participant with Central Depository Services Limited (CDSL) National
Securities Depository Limited (NSDL),NERL, COMRIS and CCRL and is member of Association of Mutual Funds of India (AMFI) for distribution of financial products and Insurance
Regulatory & Development Authority of India (IRDA) as Corporate Agent for insurance products.
Details of associate entities of Motilal Oswal Financial Services Limited are
available on the website at
http://onlinereports.motilaloswal.com/Dormant/documents/List%20of%20Associate%20companies.pdf
MOFSL and its associate company(ies), their directors and Research Analyst and their relatives may; (a) from time to time, have a long or short position in, act as principal in, and
buy or sell the securities or derivatives thereof of companies mentioned herein. (b) be engaged in any other transaction involving such securities and earn brokerage or other
compensation or act as a market maker in the financial instruments of the company(ies) discussed herein or act as an advisor or lender/borrower to such company(ies) or may have
any other potential conflict of interests with respect to any recommendation and other related information and opinions.; however the same shall have no bearing whatsoever on the
specific recommendations made by the analyst(s), as the recommendations made by the analyst(s) are completely independent of the views of the associates of MOFSL even
though there might exist an inherent conflict of interest in some of the stocks mentioned in the research report
MOFSL and / or its affiliates do and seek to do business including investment banking with companies covered in its research reports. As a result, the recipients of this report
should be aware that MOFSL may have a potential conflict of interest that may affect the objectivity of this report. Compensation of Research Analysts is not based on any specific
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https://galaxy.motilaloswal.com/ResearchAnalyst/PublishViewLitigation.aspx
A graph of daily closing prices of securities is available at
www.nseindia.com, www.bseindia.com.
Research Analyst views on Subject Company may vary based on Fundamental
research and Technical Research. Proprietary trading desk of MOFSL or its associates maintains arm’s length distance with Research Team as all the activities are segregated
from MOFSL research activity and therefore it can have an independent view with regards to Subject Company for which Research Team have expressed their views.
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This report is not directed or intended for distribution to or use by any person or entity resident in a state, country or any jurisdiction, where such distribution, publication, availability
or use would be contrary to law, regulation or which would subject MOFSL & its group companies to registration or licensing requirements within such jurisdictions.
For Hong Kong:
This report is distributed in Hong Kong by Motilal Oswal capital Markets (Hong Kong) Private Limited, a licensed corporation (CE AYY-301) licensed and regulated by the Hong
Kong Securities and Futures Commission (SFC) pursuant to the Securities and Futures Ordinance (Chapter 571 of the Laws of Hong Kong) “SFO”. As per SEBI (Research Analyst
Regulations) 2014 Motilal Oswal Securities (SEBI Reg No. INH000000412) has an agreement with Motilal Oswal capital Markets (Hong Kong) Private Limited for distribution of
research report in Hong Kong. This report is intended for distribution only to “Professional Investors” as defined in Part I of Schedule 1 to SFO. Any investment or investment activity
to which this document relates is only available to professional investor and will be engaged only with professional investors.” Nothing here is an offer or solicitation of these
securities, products and services in any jurisdiction where their offer or sale is not qualified or exempt from registration. The Indian Analyst(s) who compile this report is/are not
located in Hong Kong & are not conducting Research Analysis in Hong Kong.
For U.S.
Motilal Oswal Financial Services Limited (MOFSL) is not a registered broker - dealer under the U.S. Securities Exchange Act of 1934, as amended (the"1934 act") and under
applicable state laws in the United States. In addition MOFSL is not a registered investment adviser under the U.S. Investment Advisers Act of 1940, as amended (the "Advisers
Act" and together with the 1934 Act, the "Acts), and under applicable state laws in the United States. Accordingly, in the absence of specific exemption under the Acts, any
brokerage and investment services provided by MOFSL , including the products and services described herein are not available to or intended for U.S. persons. This report is
intended for distribution only to "Major Institutional Investors" as defined by Rule 15a-6(b)(4) of the Exchange Act and interpretations thereof by SEC (henceforth referred to as
"major institutional investors"). This document must not be acted on or relied on by persons who are not major institutional investors. Any investment or investment activity to which
this document relates is only available to major institutional investors and will be engaged in only with major institutional investors. In reliance on the exemption from registration
provided by Rule 15a-6 of the U.S. Securities Exchange Act of 1934, as amended (the "Exchange Act") and interpretations thereof by the U.S. Securities and Exchange
Commission ("SEC") in order to conduct business with Institutional Investors based in the U.S., MOFSL has entered into a chaperoning agreement with a U.S. registered broker-
dealer, Motilal Oswal Securities International Private Limited. ("MOSIPL"). Any business interaction pursuant to this report will have to be executed within the provisions of this
chaperoning agreement.
The Research Analysts contributing to the report may not be registered /qualified as research analyst with FINRA. Such research analyst may not be associated persons of the U.S.
registered broker-dealer, MOSIPL, and therefore, may not be subject to NASD rule 2711 and NYSE Rule 472 restrictions on communication with a subject company, public
appearances and trading securities held by a research analyst account.
For Singapore
In Singapore, this report is being distributed by Motilal Oswal Capital Markets Singapore Pte Ltd (“MOCMSPL”) (Co.Reg. NO. 201129401Z) which is a holder of a capital markets
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Specific Disclosures
1 MOFSL, Research Analyst and/or his relatives does not have financial interest in the subject company, as they do not have equity holdings in the subject company.
2 MOFSL, Research Analyst and/or his relatives do not have actual/beneficial ownership of 1% or more securities in the subject company
3 MOFSL, Research Analyst and/or his relatives have not received compensation/other benefits from the subject company in the past 12 months
4 MOFSL, Research Analyst and/or his relatives do not have material conflict of interest in the subject company at the time of publication of research report
5 Research Analyst has not served as director/officer/employee in the subject company
6 MOFSL has not acted as a manager or co-manager of public offering of securities of the subject company in past 12 months
7 MOFSL has not received compensation for investment banking/ merchant banking/brokerage services from the subject company in the past 12 months
8 MOFSL has not received compensation for other than investment banking/merchant banking/brokerage services from the subject company in the past 12 months
9 MOFSL has not received any compensation or other benefits from third party in connection with the research report
10 MOFSL has not engaged in market making activity for the subject company
11 August 2022
9
 Motilal Oswal Financial Services
VRL Logistics
********************************************************************************************************************************
The associates of MOFSL may have:
- financial interest in the subject company
- actual/beneficial ownership of 1% or more securities in the subject company
- received compensation/other benefits from the subject company in the past 12 months
- other potential conflict of interests with respect to any recommendation and other related information and opinions.; however the same shall have no bearing whatsoever on the
specific recommendations made by the analyst(s), as the recommendations made by the analyst(s) are completely independent of the views of the associates of MOFSL even
though there might exist an inherent conflict of interest in some of the stocks mentioned in the research report.
- acted as a manager or co-manager of public offering of securities of the subject company in past 12 months
- be engaged in any other transaction involving such securities and earn brokerage or other compensation or act as a market maker in the financial instruments of the
company(ies) discussed herein or act as an advisor or lender/borrower to such company(ies)
- received compensation from the subject company in the past 12 months for investment banking / merchant banking / brokerage services or from other than said services.
The associates of MOFSL has not received any compensation or other benefits from third party in connection with the research report
Above disclosures include beneficial holdings lying in demat account of MOFSL which are opened for proprietary investments only. While calculating beneficial holdings, It does not
consider demat accounts which are opened in name of MOFSL for other purposes (i.e holding client securities, collaterals, error trades etc.). MOFSL also earns DP income from
clients which are not considered in above disclosures.
Analyst Certification
The views expressed in this research report accurately reflect the personal views of the analyst(s) about the subject securities or issues, and no part of the compensation of the
research analyst(s) was, is, or will be directly or indirectly related to the specific recommendations and views expressed by research analyst(s) in this report.
Terms & Conditions:
This report has been prepared by MOFSL and is meant for sole use by the recipient and not for circulation. The report and information contained herein is strictly confidential and
may not be altered in any way, transmitted to, copied or distributed, in part or in whole, to any other person or to the media or reproduced in any form, without prior written consent
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nature. The information is obtained from publicly available media or other sources believed to be reliable. Such information has not been independently verified and no guaranty,
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instruments for the clients. Though disseminated to all the customers simultaneously, not all customers may receive this report at the same time. MOFSL will not treat recipients as
customers by virtue of their receiving this report.
Disclaimer:
The report and information contained herein is strictly confidential and meant solely for the selected recipient and may not be altered in any way, transmitted to, copied or
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in this report constitutes investment, legal, accounting and tax advice or a representation that any investment or strategy is suitable or appropriate to your specific circumstances.
The securities discussed and opinions expressed in this report may not be suitable for all investors, who must make their own investment decisions, based on their own investment
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document should make such investigations as it deems necessary to arrive at an independent evaluation of an investment in the securities of companies referred to in this
document (including the merits and risks involved), and should consult its own advisors to determine the merits and risks of such an investment. The investment discussed or views
expressed may not be suitable for all investors. Certain transactions -including those involving futures, options, another derivative products as well as non-investment grade
securities - involve substantial risk and are not suitable for all investors. No representation or warranty, express or implied, is made as to the accuracy, completeness or fairness of
the information and opinions contained in this document. The Disclosures of Interest Statement incorporated in this document is provided solely to enhance the transparency and
should not be treated as endorsement of the views expressed in the report. This information is subject to change without any prior notice. The Company reserves the right to make
modifications and alternations to this statement as may be required from time to time without any prior approval. MOFSL, its associates, their directors and the employees may from
time to time, effect or have effected an own account transaction in, or deal as principal or agent in or for the securities mentioned in this document. They may perform or seek to
perform investment banking or other services for, or solicit investment banking or other business from, any company referred to in this report. Each of these entities functions as a
separate, distinct and independent of each other. The recipient should take this into account before interpreting the document. This report has been prepared on the basis of
information that is already available in publicly accessible media or developed through analysis of MOFSL. The views expressed are those of the analyst, and the Company may or
may not subscribe to all the views expressed therein. This document is being supplied to you solely for your information and may not be reproduced, redistributed or passed on,
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all jurisdictions or to certain category of investors. Persons in whose possession this document may come are required to inform themselves of and to observe such restriction.
Neither the Firm, not its directors, employees, agents or representatives shall be liable for any damages whether direct or indirect, incidental, special or consequential including lost
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The person accessing this information specifically agrees to exempt MOFSL or any of its
affiliates or employees from, any and all responsibility/liability arising from such misuse and agrees not to hold MOFSL or any of its affiliates or employees responsible for any such
misuse and further agrees to hold MOFSL or any of its affiliates or employees free and harmless from all losses, costs, damages,
expenses that may be suffered by the person
accessing this information due to any errors and delays.
Registered Office Address: Motilal Oswal Tower, Rahimtullah Sayani Road, Opposite Parel ST Depot, Prabhadevi, Mumbai-400025; Tel No.: 022 71934200/ 022-71934263;
Website
www.motilaloswal.com.CIN
no.: L67190MH2005PLC153397.Correspondence Office Address: Palm Spring Centre, 2nd Floor, Palm Court Complex, New Link Road,
Malad(West), Mumbai- 400 064. Tel No: 022 7188 1000.
Registration Nos.: Motilal Oswal Financial Services Limited (MOFSL)*: INZ000158836(BSE/NSE/MCX/NCDEX); CDSL and NSDL: IN-DP-16-2015; Research Analyst:
INH000000412. AMFI: ARN - 146822; Investment Adviser: INA000007100; Insurance Corporate Agent: CA0579;PMS:INP000006712. Motilal Oswal Asset Management Company
Ltd. (MOAMC): PMS (Registration No.: INP000000670); PMS and Mutual Funds are offered through MOAMC which is group company of MOFSL. Motilal Oswal Wealth
Management Ltd. (MOWML): PMS (Registration No.: INP000004409) is offered through MOWML, which is a group company of MOFSL. Motilal Oswal Financial Services Limited is
a distributor of Mutual Funds, PMS, Fixed Deposit, Bond, NCDs,Insurance Products and IPOs.Real Estate is offered through Motilal Oswal Real Estate Investment Advisors II Pvt.
Ltd. which is a group company of MOFSL. Private Equity is offered through Motilal Oswal Private Equity Investment Advisors Pvt. Ltd which is a group company of MOFSL.
Research & Advisory services is backed by proper research. Please read the Risk Disclosure Document prescribed by the Stock Exchanges carefully before investing. There is no
assurance or guarantee of the returns. Investment in securities market is subject to market risk, read all the related documents carefully before investing. Details of Compliance
Officer: Name: Neeraj Agarwal, Email ID: na@motilaloswal.com, Contact No.:022-71881085.
* MOSL has been amalgamated with Motilal Oswal Financial Services Limited (MOFSL) w.e.f August 21, 2018 pursuant to order dated July 30, 2018 issued by Hon'ble National
Company Law Tribunal, Mumbai Bench.
11 August 2022
10