ICICI Direct - Q4FY21 Result Preview - Logistics

In Q4, our logistics coverage universe is expected to benefit from changing consumer ordering habits post pandemic, greater adoption of digital technology by MSME customers, YoY upswing in auto sales and higher movement of Exim via rail. Core segments like auto, pharma, e-commerce, MSMEs continued to see a good pick-up in demand with record E-Way bill generation during March (6.6 crore till March 28 vs. pre-pandemic 5.5 crore levels) and any signs of a slowdown in freight activity due to intermittent lockdown/curfew in a few bigger states are yet to be visible.

Financial performance expected to remain mixed

In our logistics coverage universe, we expect strong double digit YoY topline performance. However, on the operational front, Concor is expected to stay muted (mainly due to higher LLF charges), dragging down the strong performance of overall coverage (notable standout performance is expected from Mahindra Logistics due to lower base and revival in the auto sector). However, on a QoQ basis, Concor is expected to post the best operational numbers compared to the overall muted performance by other logistics companies (higher crude prices in spite of expected partial passage to customers and higher transportation compared to warehousing, could be a drag on performance).

For details, click on the link below: https://www.icicidirect.com/mailimages/IDirect_Logistics_Q4FY21.pdf

Source : Equity Bulls

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