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VRL Logistics Limited Call Transcript 2021
61148_rns_2021-09-04_388802ad-7e5e-41d9-b441-88d21a16b48d.pdf
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VRL LOGISTICS LTD
Corporate Office:
Giriraj Annexe Circuit House Road HUBBALLI - 580 029 Karnataka State Phone: 0836 2237511 Fax : 0836 2256612 e-mail : [email protected]
To,
BSE Limited Phiroze Jeejeebhoy Towers Dalal Street Mumbai-400001
National Stock Exchange of India Limited Exchange Plaza, Plot No. C/1, G-Block, Bandra - Kurla Complex, Bandra (E), Mumbai - 400 051
Dear Sir / Madam,
Disclosure under Regulation 30 (6) of the SEBI (Listing Obligations & Disclosure Requirements) Sub: Regulations, 2015
Scrip Codes - (BSE - 539118) (NSE - VRLLOG) Ref:
In accordance with Regulation 30(6) of the SEBI (Listing Obligations and Disclosure Requirements) Regulations 2015, please find below the details of a scheduled conference calls as under-
| Date and Time | Investors/Analyst | Type of Meeting | Arranged by |
|---|---|---|---|
| $6th$ Sept 2021at 3.00 PM(IST) | DSP Investment Managers | ConferenceCall w.r.t.discussion on Company's&FinancialbusinessResults of the Company | Edelweiss fin |
| 6 th Sept 2021at 4.00 PM(IST) | Kotak Mahindra AssetManagement | ConferenceCall w.r.t.discussion on Company's&FinancialbusinessResults of the Company | Edelweiss fin |
| $6th$ Sept 2021at 5.00 PM(IST) | Group Meeting with below statedinvestors:1. Canara HSBC Life InsuranceUTI Mutual Fund2.PNB MetLife India Insurance3.EM Capital Advisors4.LIC Mutual Fund5.New Horizon6.AlfAccurate Advisor7.Edelweiss AIF8.Muthoot Family office9.10. PlutusWealth Mgmt11. HDFC Life Insurance Company | Conference Call w.r.t.discussion on Company's&FinancialbusinessResults of the Company | Edelweiss fin294LL1-580 |
| 7 th Sept 2021At 10.00 AM (IST) | HDFCAssetManagementCompany | In person meeting w.r.t.discussion on Company's | Edelweiss fin |
Regd. & Admn. Office : Bengaluru Road Varur HUBBALLI - 581 207 Karnataka State Phone: 0836 2237613 Fax: 0836 2237614 e-mail: [email protected] Customer Care: HUBBALLI @ 0836 - 2307800 e-mail: [email protected] Website : www.vrllogistics.com CIN : L60210KA1983PLC005247 GSTIN (KAR): 29AABCV3609C1ZJ
VRL LOGISTICS LTD
Corporate Office : Giriraj Annexe Circuit House Road HUBBALLI - 580 029 Karnataka State Phone: 0836 2237511 Fax : 0836 2256612 e-mail : [email protected]
| Financialbusiness8 kResults of the Company | |||
|---|---|---|---|
| 7 th Sept 2021At 12.00 PM (IST) | Avendus Capital Public MarketsAlternate Strategies | ConferenceCall w.r.t.discussion on Company'sbusiness$\mathbf{g}$FinancialResults of the Company | Edelweiss fin |
| 7 th Sept 2021At 02.00 PM (IST) | Sundaram Asset Management | ConferenceCall w.r.t.discussion on Company'sFinancialbusiness&Results of the Company | Edelweiss fin |
| 7 th Sept 2021At 03.00 PM (IST) | PGIM MF | Conference Call w.r.t.discussion on Company'sFinancialbusiness&Results of the Company | Edelweiss fin |
| 7 th Sept 2021At 04.00 PM (IST) | Group Meeting with below statedinvestors:1. Baroda Mutual Fund2. Indiabulls Asset Management3.Mahindra Asset ManagementMK Ventures4.OysterrockCapital-PB5.Dalal & Broacha Stock Broking6.7. ITI Mutual Fund8. ICICI Prudential Life InsuranceHDFC Asset Management9.10. Old Bridge CapitalManagement | ConferenceCall w.r.t.discussion on Company'sbusiness&FinancialResults of the Company | Edelweiss fin |
| 7 th Sept 2021At 06.00 PM (IST) | Tata Mutual Fund | ConferenceCall w.r.t.discussion on Company'sFinancialbusiness&Results of the Company | Edelweiss fin |
| 7 th Sept 2021At 07.15 PM (IST) | Kabouter Management | ConferenceCall w.r.t.discussion on Company'sbusiness&FinancialResults of the Company | Edelweiss fin |
| 8 th Sept 2021At 11.00 AM (IST) | Canara Robeco Mutual Fund | In person meeting w.r.t.discussion on Company's&FinancialbusinessResults of the Company | Edelweiss fin |
Regd. & Admn. Office: Bengaluru Road Varur HUBBALLI - 581 207 Karnataka State Phone: 0836 2237613 Fax: 0836 2237614 e-mail: [email protected] Customer Care: HUBBALLI @ 0836 - 2307800 e-mail: [email protected] Website : www.vrllogistics.com CIN : L60210KA1983PLC005247 GSTIN (KAR): 29AABCV3609C1ZJ
VRL LOGISTICS LTD
Corporate Office: Giriraj Annexe Circuit House Road HUBBALLI - 580 029 Karnataka State Phone: 0836 2237511 Fax : 0836 2256612 e-mail : [email protected]
| 8 th Sept 2021At 2.00 PM (IST) | Bajaj Allianz Life Insurance | ConferenceCallw.r.t.discussion on Company'sbusiness &FinancialResults of the Company | Edelweiss fin |
|---|---|---|---|
| 8 th Sept 2021At 3.00 PM (IST) | Carnelian Asset Management | Conference Call w.r.t.discussion on Company'sbusiness&FinancialResults of the Company | Edelweiss fin |
| 8 th Sept 2021At 4.00 PMPM(IST) | Nippon Life Asset Management | Conference Call w.r.t.discussion on Company'sFinancialbusiness&Results of the Company | Edelweiss fin |
| 8 th Sept 2021At 5.00 PM (IST) | L&T Mutual Fund | Conference Call w.r.t.discussion on Company's&businessFinancialResults of the Company | Edelweiss fin |
| 9 th Sept 2021At 11.00 AM (IST) | Abakkus Asset Managers | In person meeting w.r.t.discussion on Company'sFinancial&businessResults of the Company | Edelweiss fin |
Also we enclose herewith an additional presentation that would be shared and discussed for the said meetings.
Corporate Presentation on the Financial Results for the quarter ended June 30th, 2021, hosted on Company's website as also filed with Stock Exchanges on 07th August 2021 would be used for the said meetings. No unpublished price sensitive information (UPSI) is proposed to be shared during the meeting.
You are requested to kindly take note of the same.
For VRL LOGISTICS LIMITED
Im
ANIRUDDHA PHADNAVIS COMPANY SECRETARY & COMPIANCE OFFICER
Place: Hubballi Date: 04.09.2021
VRL LOGISTICS LTD.
PRESENTATION TO INVESTORS
September 2021
WHAT IS VRL – KEY DIFFERENTIATORS
- India 73% Goods transported by road
- VRL -
- Operating model
- VRL owns ~5,000 vehicles
- Distribution Network
- Vehicles Specially Designed by ALL / in-house
- Higher Payload
- Owned Vehicle
VRL Long Term / Sustainable
- Only "Owned Asset" organised player in LTL business in INDIA Integrated hub-and-spoke operating model ensuring efficient consignment distribution
- Efficient operations with largest fleet and No outsourcing of transportation
- Robust pan India network having 884 branches, including 46 massive warehousing facilities
- Higher Payload
- Lower Cost / Higher Margin per KG Delivered
- ENTRY BARRIER.
WHAT IS VRL – KEY DIFFERENTIATORS
- More than 55% vehicles Fully Depreciated
- More than 93% vehicles Debt Free
- Financial performance & position
- EBITDA Margins
- Cash Profits/Cash EPS
- No Outsourcing of transport
- Bulk procurement policy
- Addition of Electric vehicles
Lowest Cost Carrier
- No Associated finance costs
- Track record of growth and robust financial position
- @ 14.66% (FY21) – Highest in the industry
- Higher cash profit margins & Cash EPS in the Industry
- No Additional Margin to be Paid to Outside Vehicle Service Provider
- Economies of scale
- 3 Moving toward new age vehicles and adding to margins
WHY VRL MUCH BETTER POSITIONED THAN LATEST ENTRANTS WITHOUT VEHICLE FLEET
- Pan-India surface logistics services provider with an established brand having one of the largest distribution networks in India
- Much lower operating cost and much higher margin due to owned vehicles.
- Much lower Debt Level INR 55 Crs. LT Loan v/s ~1.3 BLN USD for others .
- Least cash drainage for servicing and repayment.
- No Cash Burning. Whereas new entrants are burning heavy cash
- Scrapping Policy to start from Apr 1, 2022 (PSU vehicles) & Apr 1, 2023 (Heavy Commercial vehicles)
- first year 4,00,000 vehicles will be off road and subsequent years at least 200,000 / year.
- Outsourced transport charges will increase substantially (due to lesser availability of vehicles) — which will be difficult to pass on to e-commerce players as they already operate on thin margin.
- New Entrants will be severely impacted whereas VRL will be benefited for any similar rise in Delivery Charges and will straightaway add to PAT.
- Outsourcing vehicle will become unsustainable business.
WHY VRL MUCH BETTER POSITIONED THAN LATEST ENTRANTS WITHOUT VEHICLE FLEET
- Today VRL & New Entrants have similar tariff structure – where they always maintain "Parity"
- Hence, while the competitors will increase price due to cost increase emanating from scrapping policy
- For VRL – there will be no such cost increase, and on the contrary, such comparable tariff increase will straightaway add to VRL's EBITDA & Profits!
VRL – STANDALONE STRENGTHS
- Most efficient collection mechanism
- Annual bad debt less than 5 lakh on ~2,000 Crs. Revenue
- Hardly any collectible more than 90 days.
- Efficient operations with largest fleet and a robust pan India network in 884 branches including 46 massive warehousing facilities.
- Wide range of Customers
- Not dependent on any single customer or any single product.
- Own workshop, Own fittings, Own Body Building, Own Design
- Lowest cost Operator.
- Double digit business volume growth.
Gradual margin growth in core GT segment, driven by freight volume.
VRL – STANDALONE STRENGTHS
- PROACTIVELY preparing for Scrapping policy
- VRL has 841 vehicles > 15 years, as of Mar 2021 with a total capacity of 8407 tons , whereas VRL added 6762 tons capacity in last two financial years.
- Targeting higher Bio diesel consumption to improve margin.
- Strongest Resilience even in times of Pandemic with above features.
- VRL could be an immediate formidable B2C player, if it chooses to enter this vertical.
ALL ROUND INCREASE IN PROFITABILITY
Despite Increase in Profitability, ROE & ROCE Seen Declining –
As Entire Profits Mainly Accumulated in NW, Thus Increasing Denominator.
THANK YOU !
