VRL Logistics Limited has informed the Exchange about Investor Presentation
Corporate Office:
Giriraj Annexe Circuit House Road HUBBALLI- 580 029 Karnataka State
Phone : 0836- 2237511 Fax : 0836 2256612 e-mail : headoffice@vrllogistics.com
National Stock Exchange of India Limited Exchange Plaza, Plot No.C/1, G-Block, Bandra – Kurla Complex, Bandra (E), Mumbai – 400 051 Scrip Code: VRLLOG
To,
BSE Limited Phiroze Jeejeebhoy Towers Dalal Street Mumbai- 400 001 Scrip Code: 539118
Dear Sir / Madam,
Sub: Submission 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 of the Company which would also be hosted on the website of our Company.
We request you to kindly take note of the same
Thanking you,
Yours faithfully
For VRL LOGISTICS LIMITED
ANIRUDDHA PHADNAVIS COMPANY SECRETARY AND COMPLIANCE OFFICER Date: 10.11.2022 Place: Hubballi
Corporate Office: Giriraj Annexe, Circuit House Road, HUBBALLI- 580 029 Karnataka Phone: 0836 2237511 Fax: 0836- 2256612 e-mail: headoffice@vrllogistics.com
Customer Care: HUBBALLI
0836- 2307800e-mail: customercare@vrllogistics.com
Website: www.vrllogistics.comCIN: L60210KA1983PLC005247GSTIN (KAR): 29AABCV3609C1ZJ
Q2 FY2022-23
Earnings presentation
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Disclaimer
•
•
•
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 herein.
The information contained in this presentation has not been independently verified and no representation or warranty expressed or implied is made, 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 are not a guarantee of future performance 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. Many factors could cause the actual results, to be materially different 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, etc
• 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 contents 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.
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VRL – MARKET LEADER IN B2B PARCEL SEGMENT
Only “Owned Asset” organised player in Less than Truck load logistics business in India
Pan-India surface logistics services provider with an established brand having one of the largest distribution networks in India
Integrated hub-and-spoke operating model ensuring efficient consignment distribution
Dedicated in-house maintenance facilities, inventory of spare parts and In-house software & technology capabilities
Apt asset owned model leads to higher operating margins, higher cash flows & return metrics
Diversified Customer base with varied Commodity mix
7 LAKH + CUSTOMER BASE
20000+ WORKFORCE led by experienced management
47 MASSIVE TRANSHIPMENT HUBS
1045 GOODS TRANSPORT BRANCHES
HIRED VEHICLES ENGAGED ON NEED BASIS
5193 OWNED GOODS TRANSPORT VEHICLES
.
H1FY23 CONSOLIDATED FINANCIAL PERFORMANCE
KEY HIGHLIGHTS
Revenue @ Rs.145303 lakhs
H1FY23 records the highest ever HALF YEARLY turnover driven by revival in economy and growing economic indicators.
EBITDA @ Rs.21880 lakhs
PAT @ Rs.8082 lakhs
Margins @ 15.06%
Margins @ 5.56%
Revenue up by 38% H1YoY
EBITDA up by 42% H1YoY
PAT up by 86% H1YoY
Cash flow generated from Operating activities is Rs.20253 lakhs.
Cash flow from operations to EBITDA is a healthy @ 93%
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CONSOLIDATED FINANCIALS
Consolidated
(INR in Lakhs)
Q2
YoY
FY23
FY22
Growth (%)
Q1
FY22
QoQ
YoY
Growth (%)
H1FY23 H1FY22 Growth (%)
Income from operations
73075
63637
15%
71711
2%
144786
105014
38%
220
177
296
517
528
73295
63814
15%
72008
2%
145303
105542
38%
10142
11506
(12%)
11738
(14%)
14%
18%
5852
8%
4396
6%
7549
12%
6568
10%
(22%)
7837
(25%)
(33%)
6606
(33%)
21880
15%
13689
9%
11002
8%
8082
6%
15463
42%
15%
7738
7%
5807
6%
77%
89%
4344
86%
4%
6
PAT (exclusive of other comprehensive income)
MARGINS (%)
3146
4948
(36%)
4937
(36%)
4%
8%
7%
Other Income
Total Income
EBITDA
MARGINS (%)
EBIT
MARGINS (%)
PBT
MARGINS (%)
Q2 FY23 CONSOLIDATED FINANCIAL PERFORMANCE
VRL has continuously surpassed its Quarterly Revenue by recording its highest ever turnover on quarterly basis.
Q2FY23
Revenue @ Rs.73295 lakhs
YoY
15% YoY
KEY HIGHLIGHTS Q2FY23 records the highest ever Quarterly turnover driven by increased demand across all sectors in the GT segment
Revenue increases 15% YoY & 2% QoQ
Goods Transport revenue increases 14% YoY & 7% QoQ
Bus Operations revenue increases 46% YoY & decreases 25% QoQ &. Bus Operations EBITDA decreases 81% QoQ
EBITDA @ Rs.10142 lakhs
(12%) YoY
Dip in Q-o-Q Performance of Bus segment in Q2FY23 impacted the consolidated EBITDA and EBITDA margins
QoQ
2% QoQ
(14%) QoQ
PAT @ Rs.3146 lakhs
(36%) QoQ
(36%) YoY
Sale of Wind Power segment – considered as “Assets held for sale” with thereby eliminating contribution from this effect segment to the consolidated numbers from August 2022
from 01.08.2022,
in Q2 FY23 Profit on sale of Wind Power segment is not yet recognized & is being depicted as “Asset held for sale” - Would be recognized upon obtaining necessary regulatory approvals.
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GOODS TRANSPORT (GT)
Rupees in Lakhs
Revenue
Q2
YoY
Q1
QoQ
YoY
FY23
FY22 Growth (%)
FY22 Growth (%) H1FY23 H1FY22 Growth (%)
65001
56882
14%
60887
7%
125888
95364
32%
EBITDA
10113
10979
(8%)
9976
1.4%
20089
15286
31%
Margin (%)
16%
19%
16%
16%
16%
EBIT
6619
7929
(17%)
6954
(5%)
13573
9377
45%
Margin (%)
10%
14%
11%
11%
10%
Revenue
EBITDA
56882
59612
58762
60887
65001
10979
12798
12182
9976
10113
Q2FY23 records the highest ever revenue @ Rs.65001 lakhs driven by demand across all sectors and addition of new SME and Corporate clients
Q2FY23 Revenue up by 14% YOY & 7% QoQ
Q2FY23 Revenue up by 32% H1YoY
Q2FY23 EBITDA @ 10113 lakhs & Margins @16%
Addition of new branches supporting revenue increase to all time high
Q2FY22
Q3FY22
Q4 FY22
Q1 FY23
Q2 FY23
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GT PERFORMANCE Revenue Analysis
• GT revenue increased by 32% H1YoY, 14% YoY and 7% QoQ due to revival in economy and growing demand from
SME and Corporates.
•
Volumes up by 27% H1YoY, 14% YoY and 7% QoQ. Focus on Volume Growth- Wait and Watch approach on Freight Rates
• Sudden surge in Festive Bookings (@fag end of Q2FY23) as compared to earlier quarters. Related Revenue is not
recognised in the current quarter on account of non completion of services.
• 97 new Branches added in H1FY23 and 29 new Branches added in Q2FY23- enhanced VRL Logistics presence in
hitherto untapped markets.
•
Branches added in H1FY23 & FY 2021-22 contributed ~8% of total tonnage in Q2FY23
• Continued shift of Clientele base to VRL Logistics from unorganized sectors as a result of increase in compliance
requirements under GST
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GT – PROFITABILITY ANALYSIS
YOY
EBITDA
Q2 FY23
Q2 FY22
(Percent to Revenue)
Difference (%)
Reason
15.56%
19.30%
(3.74%)
Fuel cost
30.43%
30.68%
(0.25%)
• Increase in costs due to Retail procurement increases from 47.09% in Q2FY22
to 98.3% in Q2FY23 as there was an increase in rates for bulk purchase of Diesel from refineries.
• Compensated by Decline in Fuel procurement costs per litre due to reduction in
Excise Duty
• Engagement of more outside vehicles due to sudden surge in festive bookings
Lorry Hire
10.16%
7.25%
2.91%
specifically from Surat and Ahmedabad markets
• Increase in Lorry hire charges per Km
Vehicle Running, Repairs & Maintenance
6.60%
7.77%
(1.17%)
• Increase in Kms covered by New vehicles in overall Kms with lesser
maintenance costs.
Bridge & Toll expenses
7.33%
6.14%
Hamali (Loading & Unloading Charges) Employee Cost Other Expenses
EBIT
6.39%
5.90%
14.90%
13.76%
8.62%
9.20%
10.18%
13.94%
1.19%
0.49%
1.14%
(0.57%)
(3.76%)
Depreciation
5.37%
5.36%
0.01%
• Increase in number of toll points , Toll Rates and Increase in Kms by Company
owned vehicles
• Increase in Loading and Unloading rates per ton
• Annual Increments effected from January 22
• Rest of all other expenses were fairly under control and reduced by 0.57%
• Due to Decline in EBITDA margins
• Increases on account of increase in Capex • Compensated by reduction in depreciation due to useful life of goods transport
vehicles is revised from 8.84 years to 15 years.
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GT – PROFITABILITY ANALYSIS
QoQ
EBITDA
Q2 FY23
Q1 FY23
(Percent to Revenue)
Difference (%)
15.56%
16.39%
(0.83%)
Reason
• Sudden increase in Transit tonnage booked during festive surge (fag end of Q2FY23) as compared to earlier quarters. Revenue of this tonnage is not recognised in the current quarter on account of non completion of services.
• Due to engagement of more outside vehicles on account of festive
Lorry Hire
10.16%
9.37%
0.79%
demand specifically from Surat and Ahmedabad markets
• Increase in Lorry hire charges per Km
Vehicle Running, Repairs & Maintenance
6.60%
6.11%
0.49%
• Due to increase in Spare parts rates
Vehicles Operation-Diesel Cost
30.43%
31.11%
(0.68%)
Duty
• Decline in Fuel procurement costs per litre due to reduction in Excise
Employee costs
14.90%
15.16%
(0.26%)
• Being a fixed cost, percentage to revenue declined on account of
increase in tonnage and revenue.
• Rest of all other expenses were fairly under control and reduced by
Other Expenses
22.36%
21.87%
0.49%
0.49%
EBIT
Depreciation
10.18%
11.42%
(1.24%)
• Due to decline in EBITDA margins and increase in Depreciation
5.37%
4.96%
0.41%
• Due to Increase in Capex
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BUS OPERATIONS
Rupees in Lakhs
Revenue
EBITDA
Margin (%)
EBIT
Margin (%)
Q2
YoY
Q1
QoQ
YoY
FY23
FY22
Growth (%)
FY23
Growth (%)
H1FY23
H1FY22 Growth (%)
7322
5027
46%
9787
(25%)
17109
6783
152%
381
5%
20
0.3%
27
1306%
0.5%
(290)
(6%)
107%
(81%)
(99%)
1995
20%
1701
17%
2376
14%
1721
10%
757%
271%
(362)
(5%)
(1007)
(15%)
Q2FY23 Revenue @ 7322 lakhs, up by 46% YoY and (25%)% QoQ
Q2H1FY23 Revenue @ 17109 lakhs, up by 152% H1 YoY
Q2FY23 EBITDA @ 381 lakhs and Margins @ 5%
Number of buses decreases from 280 to 279 - YoY
Number of buses decreases from 297 to 279- QoQ
The Company has, during the current quarter, received approval from the Board for sale / transfer of its Bus Operations to a promoter group company 'Vijayanand Travels Private Limited' by way of slump sale as a going concern, for a sale consideration of ₹ 23,000 lakhs. The said slump sale has been approved by the shareholders on 31 October 2022.
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SALE OF POWER
Rupees in Lakhs
Revenue
EBITDA
Margin (%)
EBIT
Margin (%)
Q2
YoY
Q1
QoQ
YoY
FY23
FY22
Growth (%)
FY23
Growth (%)
H1FY23
H1FY22 Growth (%)
306
239
78%
148
48%
858
(64%)
491
(38%)
(65%)
(65%)
690
80%
419
49%
(25%)
193%
319
65%
50
10%
797
559
70%
198
25%
1412
(44%)
(48%)
(63%)
1079
76%
538
38%
The Company has, during the current quarter, executed a Business Transfer Agreement for the sale of its Wind Power Business Undertaking as a going concern on a slump sale basis for an aggregate sale consideration of ₹ 5,285 lakhs. The Company has received an advance of ₹ 4,800 lakhs against the sale consideration from the buyer. Pending approval from the relevant regulatory authorities for the sale transaction, the assets relating to this undertaking amounting to ₹ 3,760 lakhs have been classified as Assets Held for Sale in the Financial Results.
Sale of Windpower segment – considered as “Assets held for sale” with effect from 01.08.2022, thereby eliminating contribution from this segment from August 2022
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Goods Transportation Network
• Market Leader In LTL Segment
ARP- 01
AS- 07
BR 12
JH 09
OR 17
WB 34
TR 01
• Operations:
• 23 States
&
•
•
•
4 Union Territories
1045 Branches
47 Strategically Placed Hubs
J&K 05
CH 01
PB 22
HP 07
HY 26
RJ 23
GJ 77
UT 2
MP 18
MH 129
GOA 07
KA 223
KL 41
Note : Map not to scale
UK 07
DL 36
UP 44
CG 08
UT(PY) 05
TG 55
AP 92
TN 137
INFRASTRUCTURE
No of GT Vehicles Capacity (tons)
28616
Total GT Vehicles : 5193 GT vehicles carrying Capacity: 75084 tons (excluding Cranes and Tankers)
14952
14963
7363
7574
610
1184
1039
702
1612
649
533
12
432
<5 tons
5 - 10 tons
10 - 15 tons
15 - 20 tons
20 - 25 tons
25 - 30 tons
>30 tons
1.58%
9.80%
10.09%
38.12%
19.92%
19.93%
0.58%
Percent of total capacity
VRL has 1292 vehicles > 15 years, as of September 30, 2022 with a total capacity of 14349 tons, whereas VRL added 19358 tons capacity from 2019 onwards. Further 1200+ higher capacity vehicles (~13000 tons) are being added.
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Wide range of sectors served
Sports Goods
FMCG
Agriculture Products & Implements
Pharma
Leather Products
Garments
Educational
Goods
Machinery
Textile
Electrical
Food Products
Hardware
Metal
Automotive parts
Expertise In Handling Variety Of Commodities
Diversified B2B Customer Base Across Wide Range of Industries
No single customer contributing over ~1% of Total Revenue
Contribution from Top 10 customers account for ~3% of total Goods transportation business
Storage facility available in all our Delivery branches
Lowest Bad Debts and Hassle Free Claim Settlement in the Industry
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KEY DEVELOPMENTS
Addition of 97 new branches in H1FY23. 68 new branches added in Q1FY23 & 29 new branches added in Q2FY23. Closed : 8 branches. Total number of branches as on 30.09.2022 is 1045.
Expansion of existing Branch Area and increasing Branch Density in Key Markets like Pune, Ahmedabad, Raipur, Salem, Chennai, Kanpur, Delhi, Kolkata, Patna, Guwahati, Siliguri, Cuttak, etc.
Number of GT Vehicles increased from 5036 vehicles in Q1FY23 to 5193 vehicles in Q2FY23. Total New GT vehicles added in H1FY23- 560 vehicles (Vehicles added in Q1FY23- 312, Q2FY23– 248), Sold/scrapped – 183 vehicles, Net vehicle addition in H1 FY23 is 377 vehicles.
91.2% of the GT vehicles are debt free
Management is focusing on high growth and high margin Goods transport segment as evident from: • • •
Sale of Bus Operations Sale of Wind Power segment Sale of an Aircraft
Capex of Rs.16926.74 lakhs incurred during H1FY23 out of which Rs. 15258.93 lakhs was towards Goods Transport Segment
Capex of Rs.8385.48 lakhs incurred during Q2FY23 out of which Rs.7387.70 lakhs was towards Goods Transport Segment
Net debt increased from Rs. 12989.88 lakhs as on Mar 31, 2022 to Rs. 16394.82 lakhs as on 30.09.2022 despite significant Capex
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Continued focus on higher margin LTL segment
Focus on increasing Geographic presence in hitherto untapped markets
Priority to Volume Growth- Wait and Watch approach on Freight Hike
Well positioned to conclude planned fleet addition
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For Further discussions or Queries, Please contact
Sunil Nalavadi Chief Financial Officer +91 93425 59298 cfo@vrllogistics.com
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