VRL Logistics - To Exit Bus Operations; To Focus On The High Growth Goods Transport: Motilal Oswal

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 Ltd. announced the sale of its bus division for Rs 2.3 billion to Vijayanand Travels Pvt. Ltd., an entity owned by the promoter group. The slump sale is being undertaken on the basis of an independent valuation obtained from Grant Thornton Bharat and has been executed at an arms-length basis. The transaction is subject to the receipt of requisite approvals. As per the management, average revenue per passenger in the bus segment has been declining, while costs have been on a rise. VRL Logistics has been unable to pass on the cost increase to customers due to rising competition. The majority of its bus fleet is above nine years old and is due for replacement, which will require a higher capex. VRL Logistics has seen a sharp drop in capacity utilisation of buses to 50% in FY22 from 60% in FY18. Due to the above-mentioned concerns and a weakening outlook, the management has decided to exit this business..Click on the attachment to read the full report:.DISCLAIMERThis 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.

VRL Logistics - To Exit Bus Operations; To Focus On The High Growth Goods Transport: Motilal Oswal

VRL Logistics - To Exit Bus Operations; To Focus On The High Growth Goods Transport: Motilal Oswal

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