VRL Logistics Limited has informed the Exchange about Investor Presentation
Regd. & Admn. Office : Bengaluru Road Varur HUBBAILI - 581 2O7 Karnataka State Phone : 63661 19394 Fax : 0836 2237614 e-mail : varurho@vrllogistics.com
To,
BSE timited Phlroze Jeejeebhoy Towers Dalal Street Mumbai- 4{Xt fl)l Scrip Code: 539118
Dear Sir/ Madam,
ational Stock Exchange of tndia umlted
Exchange Plaza, Plot No.C/I, G-Block, Bandra - Kurla Complex, Bandra (E), Mumbai - tt00 U;l Scrlp Code: VRttOG
Sub: Submlsslon of Earnings Presentation
With respect to above captioned subject and in accordance with the extant provisions of the SEBI (Listing Obligations and Disclosure Requirements) Regulations 2015 and other applicable laws for time being in force, we enclose herewith the Earnings Presentation which would also be hosted on the website of our Company.
We request you to kindly take note of the same
Thanking you,
Yours faithfir
For VRL LOG
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ANIRUDDHA PHADNAVIS COMPANY SECRETARY & COMPLIANCE O
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Datez O2.0,2.20i22 Place Hubballl
Corporate Office: Giriraj Annexe Circuit House Road HUBBALLI - 580 029 Karnataka Phone: 0835 2237511 Fax : 0836 2256612 e-mail : headoffice@vrllogistics.com Customer Care : HUBBALLI (D 0836 - 2307800 e-m.il : customercare@vrlloglstics.com Website ! www.vrllogistlcs.com CIN : L602lOKA 1983PLC005247 GSTIN (KAR): 29AABCV3609ClZJ
VRL Financial Results - Q3 2021-22
Earnings Presentation
February 02, 2022
1
• 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.
2
A public listed company on NSE & BSE Exchange with a Market capitalization of INR 37.83 billion(as on 31st December, 2021)
Pre dominantly parcel delivery service provider (~90% of total Revenue for FY21) with pan–India last mile connectivity
Operating through a fleet of 4706 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 across multiple industries and locations
from a diversified customer base
Diverse customer base of Corporate, SMEs and traders with focus on B2B services
Extensive pan India network with presence across 23 states & 4 union territories in 929 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
Passenger transportation through 288 owned buses of various makes
3
India – 73% Goods transported by road
Long Term Sustainability
Key Differentiators
VRL
Only “Owned Asset” organised player in LTL business in India
Operating model
Integrated hub-and-spoke operating model ensuring
efficient consignment distribution
VRL owns 4706 GT vehicles
Distribution Network
Vehicles Specially Designed by
OEM`s / in-house
Efficient operations with largest fleet and minimal outsourcing of transportation
Robust pan India network across 23 states, 4 union
territories, having 929 branches, including 46 massive transhipment hub facilities. Diverse presence helps in greater stability during regional disturbances
Ensures Higher Payload and better services
Owned Vehicle operations and maintenance
Entry Barrier
4
Key Differentiators
More than 52% vehicles Fully Depreciated
More than 90% vehicles Debt Free
Financial performance & position
EBITDA Margins
Cash Profits/Cash EPS
Minimal Outsourcing of transport
Bulk procurement policy
Addition of Electric vehicles
Lower Costs
No Associated finance costs
Track record of growth and robust financial position
@19.6% (Q3FY22) – Highest in the industry
High cash profit margins & Cash EPS
No Additional Margin to be Paid to Outside Vehicle Service Provider
Economies of scale leading to better negotiations
Moving toward new age vehicles, 19 EV added in 9m FY22
5
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. • Robust cash management service (CMS) setup with negligible CMS charges.
Procurement of diesel directly from Refineries by establishing own fuel pumps in key locations to optimize the fuel
cost which is major portion of our operating costs.
Wide range of Customers
• Not dependent on any single customer or any single product. Regional disturbances have a minimal effect
Own workshop, Own fittings, Own Body Building, Own Design , Own Vehicles
•
Lowest cost Operator, Higher Payloads, Enhanced service quality, Lower maintenance costs
Double digit business volume growth.
Much lower Debt Level – INR 102 Crs.
•
Least cash burnout for servicing and repayment
Consistent margin growth in core GT segment, driven by freight volume and better realisaton
PROACTIVELY preparing for Scrapping policy
•
VRL has 1159 vehicles > 15 years, as of December 31, 2021 with a total capacity of 11344 tons, whereas VRL added 11194 tons capacity from 2019 onwards.
6
Hub-and-Spoke model to aggregate small parcels and maximize capacity utilization of its vehicles
Percentagewise New Branches added in 9M-2021-22
North 25%
East 15%
Focus on increasing presence in the North and Eastern Zones leads to 40% new branches addition in the North & Eastern Zones in 9MFY2021-22
South 38%
West 22%
Market Leader in LTL segment
Operations : 23 States, 4 Union Territories.
736 Branches
147 Agencies
46 Strategically placed Hubs
Efficient operations with largest fleet and a robust pan India network in 929 locations
7
Own Vehicle Numbers
Upto 2.5 tons (a)
2.5 tons to 7.5 tons
7.5 tons and above
Car Carrier (1)
Available Capacity (tons)
Tanker (2)
Cranes (3)
Total Vehicles Owned
BUSES
TOTAL FLEET
150
257
312
311
361
960
1009
981
942
938
2765
102
52954
3004
102
64776
3428
3289
3372
0
0
0
70012
68107
69270
17
13
20
20
22
13
13
13
13
13
4007
396
4403
4398
4754
4575
4706
381
337
291
288
4779
5091
4866
4994
As of
31-Mar-18
31-Mar-19
31-Mar-20
31-Mar-21
31-Dec 21
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.
Capacity Breakup as on Dec 31, 2021
25798
15168
14741
1171
610
892
6109
5851
530
1445
658
524
12
432
<5 tons
5 - 10 tons
10 - 15 tons
15 - 20 tons
20 - 25 tons
25 - 30 tons
>30 tons
1.69%
8.82%
8.45%
37.24%
21.90%
21.28%
0.62%
8
No of Vehicles
Capacity (tons)
% of total capacity
Goods transportation fleet
Significance of own vehicles
4706 owned vehicles as on
December 31, 2021
4252 (90%) debt free vehicles
Wide range of vehicles with carrying capacity from 1 ton to 36 tons
2426 (52%) of vehicles
are fully depreciated
and operating in
optimal condition
Bus Operations fleet
288 owned vehicles as on December 31, 2021
288 (100%) vehicles are debt free
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 4994 owned vehicles provides greater advantage in terms of pricing and service
9
1) The above Statement of Unaudited Financial Results ("Financial Results") for the quarter and nine months ended 31 December 2021 have been reviewed by the Audit Committee and approved by the Board of Directors at their respective meetings held on 2 February 2022, and 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.
2) 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.
3) The Segment Information for the quarter and nine months ended 31 December 2021 form an integral part of the
Financial Results.
4) The Board of Directors has declared an interim dividend of Rs.8 per equity share (face value of Rs. 10/- each).
5) Previous period figures have been regrouped / restated wherever considered necessary to conform to the current
period classification.
10
Consolidated (INR in Lakhs)
TOTAL INCOME
EBITDA
EBITDA Margins(%)
EBIT
EBIT Margins(%)
PBT
PBT Margins(%)
PAT (excludes comprehensive income)
PAT Margins(%)
Q3 FY22 (Unaudited)
Q2 FY22 (Unaudited)
Q3 FY21 (Unaudited)
9M FY22 (Unaudited)
9M FY21 (Unaudited)
FY21 (Audited)
68329.76
63813.76
56855.46
173871.62
117276.60
177578.73
13394.56
11506.06
10392.47
28857.19
16184.22
26035.04
19.60%
18.03%
18.28%
16.60%
13.80%
14.66%
8951.14
7549.49
6285.65
16688.91
4009.17
10056.03
13.10%
11.83%
11.06%
9.60%
3.42%
5.66%
7773.58
6568.45
5453.47
13580.20
1242.91
6374.07
11.38%
10.29%
9.59%
7.81%
1.06%
3.59%
6048.80
4947.80
3973.77
10392.42
790.35
4506.79
8.85%
7.75%
6.99%
5.98%
0.67%
2.54%
11
Revenue
EBITDA
54204
55964
52692
50026
68330
Q3FY2021-22 records the highest ever revenue @ 683 crores, up by 20.18% YOY, and 7.08% QoQ
60302
63814
56855
44181
41728
9119
7626
8206
16240
8947
10392
13395
11506
9851
3957
INR in Lakhs
5907
-3155
Q1FY20 Q2FY20 Q3FY20 Q4FY20 Q1FY21 Q2FY21 Q3FY21 Q4FY21 Q1FY22 Q2FY22 Q3FY22
Q3FY2021-22 EBITDA @ 134 crores and Margins @ 19.6%, amongst the best in the industry
9MFY2021-22 EBITDA @ 289 crores and Margins @ 16.6%, amongst the best in the industry
12
Goods Transport
INR in lakhs
Q3 FY2021-22
Q2 FY2021-22
Q3 FY2020-21
9M FY2021-22
9M FY2020-21
FY2020-21
Revenue
EBITDA (After IndAS)
EBITDA Margin
59611.71
56881.55
50100.82
154975.85
105696.82
159275.00
12797.87
10978.64
10314.71
28082.77
16285.86
26643.13
21.47%
19.30%
20.59%
18.12%
15.41%
16.73%
Note: Quarter and 9M results are unaudited, FY2020-21 – audited, , All amount in lakhs
Increase in volume and better realisations leads to higher EBITDA margins Geographical Expansion
Business shift from unorganised to organised fleet operators due to GST & E-way Bill reforms
Operational Efficiencies
Increase in sector wise revenue contribution
Q3FY2021-22 records the highest ever revenue @ 596 crores , up by 18.98% YOY, and 4.8% QoQ
Q3FY2021-22 EBITDA @ 128 crores and Margins @21.47%, amongst the best in the industry
9MFY2021-22 EBITDA @ 281 crores and Margins @ 18.12%, amongst the best in the industry
60000 55000 50000 45000 40000 35000 30000 25000 20000 15000 10000 5000 0 (5000) Revenue
42339
43202
45264
41664
40771
6854
6435
6633
5441
14824
Revenue EBITDA
-2471
59612
12798
56882
10979
50101
53577
10315
10357
8442
38483
4306
Q1FY20
Q2FY20
Q3FY20
Q4FY20
Q1FY21
Q2FY21
Q3FY21
Q4FY21
Q1FY22
Q2FY22
Q3FY22
INR in Lakhs
14000
12000
10000
8000
6000
4000
2000
0
-2000
-4000 EBITDA
13
Bus operations
INR in lakhs
Revenue
EBITDA (After IndAS)
EBITDA Margin
Q3 FY2021-22
Q2 FY2021-22
Q3 FY2020-21
9M FY2021-22
9M FY2020-21
FY2020-21
7483.40
5026.65
5211.53
14266.88
7419.13
13033.56
Bus operations turn EBITDA positive
Increase in number of passengers travelled
1107.73
32.67
472.87
757.16
(188.75)
(575.48)
Higher Realisations
14.80%
0.65%
9.07%
5.31%
(2.54%)
(4.42%)
Operational Efficiency
Note: Quarter and 9M results are unaudited, FY2020-21 – audited, All amount in lakhs
12000
10000
8000
6000
4000
2000
0
Revenue
10396
2096
9466
7451
1734
7058
503
Revenue
EBITDA
5212
5614
5027
696
(89)
473
(573)
529
1678
1757
33
(443)
(383)
7483
1108
Q1FY20
Q2FY20
Q3FY20
Q4FY20
Q1FY21
Q2FY21
Q3FY21
Q4FY21
Q1FY22
Q2FY22
Q3FY22
INR in Lakhs
2,500
2,000
1,500
1,000
500
-
(500)
(1,000)
EBITDA
14
(INR in lakhs)
Sale of Power
Particulars
Revenue
EBITDA - After Ind As 116
Quarter ended
Nine Months ended
Year ended
31.12.2021 (Unaudited)
30.09.2021 (Unaudited)
31.12.2020 (Unaudited)
31.12.2021 (Unaudited)
31.12.2020 (Unaudited
31.03.2021 (Audited)
210.07
41.33
857.92
690.17
313.26
147.86
1622.26
1548.3
1757.44
1120.16
1108.07
1159.03
EBITDA Margin(%)
19.67%
80.45%
47.20%
EBIT- After Ind AS 116
(230.38)
419.25
(115.29)
EBIT Margin(%)
(109.67%)
48.87%
(36.80%)
69.05%
307.99
18.99%
71.57%
305.83
19.75%
65.95%
80.83
4.60%
(INR in lakhs)
Transport of Passengers by Air
Particulars
Revenue
Quarter ended
Nine Months ended
Year ended
31.12.2021 (Unaudited)
30.09.2021 (Unaudited)
31.12.2020 (Unaudited)
31.12.2021 (Unaudited)
31.12.2020 (Unaudited
31.03.2021 (Audited)
162.96
371.28
403.56
884.57
888.36
1182.37
EBITDA - After Ind As 116
(159.86)
97.61
(260.74)
(103.25)
(265.42)
(270.68)
EBITDA Margin(%)
EBIT- After Ind AS 116
EBIT Margin(%)
(98.10%)
26.29%
(64.61%)
(11.67%)
(29.88%)
(22.89%)
(203.26)
42.95
(317.70)
(255.81)
(411.95)
(453.20)
(124.73%)
11.57%
(78.72%)
(28.92%)
(46.37%)
(38.33%)
15
Addition of 29 new branches in Q3FY22 and overall 60 new branches in 9MFY22. Planning to expand network by opening new branches in untapped market.
Number of GT Vehicles increased from 4575 in FY2020-21 to 4706 vehicles in 9MFY2021-22. Total of 246 GT Vehicles were added in 9MFY2021-22.(Q1FY22- 54 vehicles, Q2FY22- 138 vehicles, Q3FY22- 54 vehicles- Total 246 GT vehicles). Number of Vehicles Sold/scrapped – 115 GT Vehicles. Net vehicle addition is 131 GT vehicles.
Focus on expanding network of own fuel stations and fuel storage capacity at key locations thereby reducing the impact of rising fuel costs and improve profitability margin.
Procurement of Bio-fuel @ 8.01% of total quantity in 9MFY22, decreased by 24.78% as compared to 32.79% in 9MFY21. (Q1FY22- 13.49% of total quantity, Q2FY22– 10.55% of total quantity, 1.95% in Q3 FY22)
19 electric vehicles added during 9MFY22.
Bus Operations turns EBITDA positive on the back of increased occupancy and realisations.
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 10154.57 lakhs as on December 31, 2021
Interim Dividend of Rs 8 per equity share
16
Cash Profit (Lakhs)
10,469.78
8,984.26
8,748.13
8050.66
7693.77
2842
Q1FY2020-21
Q2FY2020-21
Q3FY2020-21
Q4FY2020-21
Q1FY2021-22
Q2FY2021-22
Q3FY2021-22
(4,192.99)
Interim Dividend of Rs 8 per equity share – Payout of 80% on Face value of Rs 10 for 9MFY2021-22
Cash profit calculation : PAT+DTL+Depreciation
17
Net Debt to Equity
Gearing Ratio
6278
12880
17706
10144
10155
0.1
0.2
0.3
0.2
0.2
24.32%
9.57%
16.62%
22.30%
14.52%
FY18
FY19
FY20
FY21
Q3FY22
FY17
FY18
FY19
FY20
FY21
Net debt/Equity(x)
Net debt position (Lakhs)
Note : Debt for the above purpose includes non-current borrowings, current borrowings and current maturities of non current borrowings and Interest accrued but not due on borrowings.
Return metrics
Leverage metrics
Return (Profit for the year+Finance costs) on Average capital employed Return(Profit for the year) on average equity
21.7
23.2
9.5
8.4
7.1
0.8
0.3
0.5
0.6
0.4
FY 17
FY 18
FY 19
FY 20
FY 21
Net debt/Ebitda(x)
Ebitda/finance cost(x)
13%
13%
16%
15%
14%
15%
16%
14%
11%
7%
FY 17
FY 18
FY 19
FY 20
FY 21
18
1.23%
3.49%
9.03%
16.66%
Promoters Mutual Funds Foreign Portfolio Investors General Public Others
69.59%
19
For further discussions/queries please contact :
Sunil Nalavadi Chief Financial Officer +91 93425 59298
cfo@vrllogistics.com