In 2021-22, topline increased by 70%. In 2022-23, I expect it to grow by 50%. Such growth rate is certainly not sustainable once the company attain a decent size.
Introduction of GST, electronic invoices and e-way bills have brought a structural change in the economy. Businesses are preferring organized logistics service provider. Time of manually made GR is over. It is resulting in shifting of business from unorganized transporter to organized transporter. The change is likely to continue in foreseeable future.
We can see that listed logistics companies, with asset light models are doing very well. The market has also rewarded asset light models like Lancer, Tiger Logistics, VRL; whereas heavy asset players have not done that well.
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