AI assistant
VRL Logistics Limited Earnings Release 2021
61148_rns_2021-11-01_3f650b93-5703-409c-8007-b49c13f1a296.pdf
Earnings Release
Open in viewerOpens in your device viewer
Corporate Office : Giriraj Annexe Circuit House Road HUBBALLI - 580 029 Karnataka State Phone : 08362237511 Fax : 08362256612 e-mail : [email protected]
To,
BSE Limited Phiroze Jeejeebhoy Towe6 Dalal Street Mumbai- 400 001 Scrip Codes : 539118
National Stock Exchange of lndia Limited Exchange Plaza, Plot No.C/l, G-Block, Bandra - Kurla Complex, Bandra (E), Mumbai - 400 051 Scrip Codes : VRLLOG
Dear 5ir / Madam,
sub: Submission of Earnings Presentation
hosted on the website of our Company. With respect to above captioned subject and in accordance with the extant provislons of the SEBI (Listing Obligations and Disclosure Requirements) Regulations 2015 and other applicable laws for time beingln force, we enclose herewith the Earnings Presentation ofthe Company which would also be
we request you to kindly take note of the same
Thanking you,
Yours fait
For vRL LqGdrlcS LIMITED
fll
ANIRUDDHA PHADNAVIS COMPANY SECRETARY AND COMPLIANCE OFFICER
Date:01.11.2021 Place: Hubballi
VRL Financial Results - Q2 FY2021-22
Earnings Presentation
November 01, 2021
• Certain statements contained in this document may be statements of future expectations/forward looking statements that are based on management"s current view and assumptions and involve known and unknown risks and uncertainties that could cause actual results/performance or events to differ materially from those expressed or implied therein.
•The information contained in this presentation has not been independently verified and no representation or warranty expressed or implied is made as to and no reliance should be placed on the fairness accuracy completeness or correctness of the information or opinions contained herein.
•This presentation may contain certain forward looking statements within the meaning of applicable securities law and regulations. These statements include descriptions regarding the intent belief or current expectations of the Company or its directors and officers with respect to the results of operations and financial condition of the Company. Such forward-looking statements is not guarantee of future performance and involve risks and uncertainties and actual results may differ from those in such forward-looking statements as a result of various factors and assumptions which the Company presently believes to be reasonable in light of its operating experience of recent years. Many factors could cause the actual results, performance or achievement of the Company to be materially different from any future results performance or achievement and significant factors that could make a difference to the Company"s operations include domestic and international economic conditions, changes in government regulations, tax regime and other statutes.
• None of VRL Logistics Ltd or any of its affiliates advisors or representatives shall have any liability whatsoever (in negligence or otherwise) for any loss howsoever arising from any use of this document or its content or otherwise arising in connection with this document.
• This document does not constitute an offer or invitation to purchase or subscribe for any shares and neither it nor any part of it shall form the basis of or be relied upon in connection with any contract or commitment whatsoever.
A public listed company on NSE & BSE Exchange with a Market capitalization of INR 33.76 billion(as on 30th September, 2021)
Pre dominantly parcel delivery service provider (~90% of total Revenue for FY21) with pan–India last mile connectivity operating through a fleet of 4687 owned Goods transport vehicles complemented by third party hired vehicles on need basis
Integrated hub-and-spoke operating model which enables proper aggregation of parcels from a diversified customer base across multiple industries and locations
Passenger transportation through 280 owned buses of various makes
Extensive pan India network with presence across 22 states & 4 union territories in 902 locations ensuring last mile delivery, even in remote locations
State - of - the - art vehicle maintenance facilities with performance enhancing technological innovations
Own fuel stations at key locations and tie up with IOCL
Dedicated In-house software with own servers and real time data for analysis and MIS
-
India 73% Goods transported by road Long Term Sustainability
-
Operating model
-
Distribution Network
-
Vehicles Specially Designed by Ensures Higher Payload OEM`s / in-house
-
Owned Vehicle operations and maintenance Entry Barrier
-
VRL Only "Owned Asset" organised player in LTL business in India
- Integrated hub-and-spoke operating model ensuring efficient consignment distribution
-
VRL owns 4687 GT vehicles Efficient operations with largest fleet and minimal outsourcing of transportation
- Robust pan India network across 22 states, 4 union territories, having 902 branches, including 45 massive transhipment hub facilities
-
More than 52% vehicles Fully Depreciated Lower Costs
-
More than 91% vehicles Debt Free No Associated finance costs
-
Minimal Outsourcing of transport
-
Bulk procurement policy Economies of scale
-
Financial performance & position Track record of growth and robust financial position
-
EBITDA Margins @18.03% (Q2FY22) Highest in the industry
-
Cash Profits/Cash EPS High cash profit margins & Cash EPS
- No Additional Margin to be Paid to Outside Vehicle Service Provider
-
Addition of Electric vehicles Moving toward new age vehicles
Most efficient collection mechanism
- Annual bad debt less than Rs.5 lakh on ~Rs.2,000 Cr. Revenue.
- Hardly any collectible more than 90 days.
Procurement of diesel directly from Refineries by establishing own fuel pumps in key locations.
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.
Much lower Debt Level – INR 154 Crs.
• Least cash burnout for servicing and repayment.
Gradual margin growth in core GT segment, driven by freight volume.
PROACTIVELY preparing for Scrapping policy
• VRL has 1137 vehicles > 15 years, as of September 30, 2021 with a total capacity of 11088 tons, whereas VRL added 10550 tons capacity from 2019 onwards.
Efficient operations with largest fleet and a robust pan India network in 902 locations 7
| Own VehicleNumbers | ||||||||||
|---|---|---|---|---|---|---|---|---|---|---|
| As of | 0.5 tons to2.5 tons(a) | 2.5 tons to7.5 tons | 7.5 tons andabove | CarCarrier(1) | AvailableCapacity(tons) | Tanker(2) | Cranes(3) | TotalVehiclesOwned | BUSES | TOTALFLEET |
| 31-Mar-18 | 150 | 960 | 2765 | 102 | 52954 | 17 | 13 | 4007 | 396 | 4403 |
| 31-Mar-19 | 257 | 1009 | 3004 | 102 | 64776 | 13 | 13 | 4398 | 381 | 4779 |
| 31-Mar-20 | 312 | 981 | 3428 | 0 | 70012 | 20 | 13 | 4754 | 337 | 5091 |
| 31-Mar-21 | 311 | 942 | 3289 | 0 | 68107 | 20 | 13 | 4575 | 291 | 4866 |
| 30-Sep21 | 361 | 942 | 3349 | 0 | 69011 | 22 | 13 | 4687 | 280 | 4967 |
Note: (a) – this category consists of electric vehicles. (1) Used for transportation of automobiles, converted to HGV"s from 2020. (2) Used for transportation of liquid (3) Cranes are predominantly used for internal operations.
Goods transportation fleet
| 4687 owned vehicles as on | 4253 (91%) debt free |
|---|---|
| September 30, 2021 | vehicles |
| Wide range of vehicleswith carrying capacityfrom 1 ton to 36 tons | 2460 (52%) of vehiclesare fully depreciatedand operating inoptimal condition |
Bus Operations fleet
280 owned vehicles as on September 30, 2021
280 (100%) vehicles are debt free
Significance of own vehicles
- Enables us to significantly control operational costs
- Higher payload per vehicle for LTL consignments
- Enables us to cover a large number of routes and reduce dependence on third party hired vehicles
- Enables better control and time bound delivery, thereby enhancing service quality
- Bus Operations: Owned vehicles enable us to provide safe and on time travel experience
Total of 4967 owned vehicles provides greater advantage in terms of pricing and service 9
-
- The above Statement of Unaudited Financial Results ("Financial Results") for the quarter and half year ended 30 September 2021 have been reviewed by the Audit Committee and approved by the Board of Directors at their respective meetings held on 1 November 2021. These Financial Results have been subjected to a limited review by the Statutory Auditors of the Company. These Financial Results are prepared and published in accordance with Regulation 33 of the SEBI (Listing Obligations & Disclosure Requirements) Regulations, 2015, as amended.
-
- These Financial Results are prepared in accordance with the Indian Accounting Standard 34 'Interim Financial Reporting' (Ind AS) 34, as prescribed under Section 133 of the Companies Act, 2013, ("the Act") read with the relevant Rules issued thereunder and other accounting principles generally accepted in India.
-
- The Unaudited Statement of Cash Flows has been prepared under the indirect method as set out in Ind AS 7 - Statement of Cash Flows.
-
- The Unaudited Statement of Assets and Liabilities as at 30 September 2021, Unaudited Statement of Cash Flows for half year ended 30 September 2021 and Segment Information for the quarter and half year ended 30 September 2021, form an integral part of the financial results.
-
- Previous period figures have been regrouped / restated wherever considered necessary to conform to the current period classification.
| Consolidated(INR in Lakhs) | Q2 FY22(Unaudited) | Q1 FY22(Unaudited) | Q2 FY21(Unaudited) | H1 FY22(Unaudited) | H1 FY21(Unaudited) | FY21(Audited) |
|---|---|---|---|---|---|---|
| TOTALINCOME | 63813.76 | 41728.10 | 44180.76 | 105541.86 | 60421.14 | 177578.73 |
| EBITDA | 11506.06 | 3956.57 | 8946.91 | 15462.63 | 5791.75 | 26035.04 |
| EBITDA Margins(%) | 18.03% | 9.48% | 20.25% | 14.65% | 9.59% | 14.66% |
| EBIT | 7549.49 | 188.28 | 5066.46 | 7737.77 | (2276.48) | 10056.03 |
| EBIT Margins(%) | 11.83% | 0.45% | 11.47% | 7.33% | (3.77%) | 5.66% |
| PBT | 6568.45 | (761.83) | 4170.21 | 5806.62 | (4210.56) | 6374.07 |
| PBT Margins(%) | 10.29% | (1.83%) | 9.44% | 5.50% | (6.97%) | 3.59% |
| PAT (excludesincome)comprehensive | 4947.80 | (604.18) | 3088.07 | 4343.62 | (3183.42) | 4506.79 |
| PATMargins(%) | 7.75% | (1.45%) | 6.99% | 4.12% | (5.27%) | 2.54% |
| (INRin lakhs) | GoodsTransport | ||||||
|---|---|---|---|---|---|---|---|
| Quarter ended | Half Year ended | Year ended | |||||
| Particulars | 30.09.2021(Unaudited) | 30.06.2021(Unaudited) | 30.09.2020(Unaudited) | 30.09.2021(Unaudited) | 30.09.2020(Unaudited) | 31.03.2021(Audited) | |
| Revenue | 56881.55 | 38482.59 | 40771.41 | 95364.14 | 55596.00 | 159275.00 | |
| EBITDA -After IndAs 116 | 10978.64 | 4306.25 | 8441.58 | 15284.89 | 5971.16 | 26643.13 | |
| EBITDA Margin(%) | 19.30% | 11.19% | 20.70% | 16.03% | 10.74% | 16.73% | |
| EBIT-After IndAS 116 | 7928.89 | 1446.95 | 5584.67 | 9375.84 | 3.55 | 14727.88 | |
| EBIT Margin(%) | 13.94% | 3.76% | 13.70% | 9.83% | 0.01% | 9.25% |
| (INRin lakhs) | Bus Operations | |||||||
|---|---|---|---|---|---|---|---|---|
| Quarter ended | Half Year ended | Year ended | ||||||
| Particulars | 30.09.2021(Unaudited) | 30.06.2021(Unaudited) | 30.09.2020(Unaudited) | 30.09.2021(Unaudited) | 30.09.2020(Unaudited) | 31.03.2021(Audited) | ||
| Revenue | 5026.65 | 1756.83 | 1678.17 | 6783.48 | 2207.6 | 13033.56 | ||
| EBITDA -After IndAs 116 | 32.67 | (383.24) | (88.76) | (350.57) | (661.61) | (575.48) | ||
| EBITDA Margin(%) | 0.65% | (21.81%) | (5.29%) | (5.17%) | (29.97%) | (4.42%) | ||
| EBIT-After IndAS 116 | (284.92) | (710.82) | (540.41) | (995.74) | (1618.47) | (2318.56) | ||
| EBIT Margin(%) | (5.67%) | (40.46%) | (32.20%) | (14.68%) | (73.31%) | (17.79%) |
| (INRin lakhs) | Sale of Power | ||||||
|---|---|---|---|---|---|---|---|
| Quarter ended | Half Year ended | Year ended | |||||
| Particulars | 30.09.2021(Unaudited) | 30.06.2021(Unaudited) | 30.09.2020(Unaudited) | 30.09.2021(Unaudited) | 30.09.2020(Unaudited) | 31.03.2021(Audited) | |
| Revenue | 857.92 | 554.27 | 755.87 | 1412.19 | 1235.04 | 1757.44 | |
| EBITDA -After IndAs 116 | 690.17 | 388.67 | 642.36 | 1078.83 | 960.22 | 1159.03 | |
| EBITDA Margin(%) | 80.45% | 70.12% | 84.98% | 76.39% | 77.75% | 65.95% | |
| EBIT-After IndAS 116 | 419.25 | 119.12 | 372.81 | 538.37 | 421.12 | 80.83 | |
| EBIT Margin(%) | 48.87% | 21.49% | 49.32% | 38.12% | 34.10% | 4.60% |
| (INRin lakhs) | Transportof Passengers by Air | |||||||
|---|---|---|---|---|---|---|---|---|
| Quarter ended | Half Year ended | Year ended | ||||||
| Particulars | 30.09.2021(Unaudited) | 30.06.2021(Unaudited) | 30.09.2020(Unaudited) | 30.09.2021(Unaudited) | 30.09.2020(Unaudited) | 31.03.2021(Audited) | ||
| Revenue | 371.28 | 350.33 | 377.23 | 721.61 | 484.8 | 1182.37 | ||
| EBITDA -After IndAs 116 | 97.61 | (41.00) | 96.89 | 56.61 | (4.69) | (270.68) | ||
| EBITDA Margin(%) | 26.29% | (11.70%) | 25.68% | 7.84% | (0.97%) | (22.89%) | ||
| EBIT-After IndAS 116 | 42.95 | (95.50) | 56.15 | (52.55) | (94.25) | (453.20) | ||
| EBIT Margin(%) | 11.57% | (27.26%) | 14.88% | (7.28%) | (19.44%) | (38.33%) |
Recovery from Pandemic – Set for Higher growth
Overall demand picked up in the second quarter and Business growth was back to pre-pandemic levels .
In spite of the difficulties faced, the impact on business was lesser than the first wave witnessed last year, as supply chains were well evolved enough to cope with localized and staggered lockdowns
Addition of 22 new branches in Q2FY22 and overall 31 new branches in H1FY22. Planning to expand network by opening new branches in untapped market.
Number of GT Vehicles increased from 4575 in FY 21 to 4687 vehicles in H1FY2021-22. New vehicles added in Q1FY22- 54 vehicles, in Q2FY22- 138 vehicles, Total Vehicles added in H1 2021-22 is 192, Sold/scrapped – 80, Net vehicle addition is 112 vehicles.
Procurement of Bio-fuel @ 11.75% of total quantity in H1FY22, (Q1FY22- 13.49% of total quantity, Q2FY22– 10.55% of total quantity)
9 electric vehicles added during H1FY22.
Enabled All India Permit for Buses from 01.4.2021
The ICRA Debt rating is reaffirmed as A+(stable)
Net debt increased from Rs 10144.31 lakhs as on Mar 31, 2021 to Rs 15371.71 lakhs as on Sep 30, 2021.
For further discussions/queries please contact :
Sunil Nalavadi Chief Financial Officer +91 93425 59298