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: 30.01.2023 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
Q3 FY2022-23
Earnings presentation
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Disclaimer
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•
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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 Truckload 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 offering varied Commodity mix
7 LAKH + CUSTOMER BASE
20000+ WORKFORCE led by experienced management
47 MASSIVE TRANSHIPMENT HUBS
1070 GOODS TRANSPORT BRANCHES
HIRED VEHICLES ENGAGED ON NEED BASIS
5433 OWNED GOODS TRANSPORT VEHICLES
.
FINANCIALS
9MFY23 Records 28% growth in Total Income driven By Strategic Expansion plan, aided by revival in Economy Activity & Increased Compliance Q3
QoQ
YoY
YoY
Q2
(INR in Lakhs)
FY23
FY22 Growth (%)
FY23
Growth (%)
9MFY23 9MFY22 Growth (%)
Income from Continuing Operations
Income from Discontinued Operations
Other Income
Total Income
Profit before tax (from Continuing +Discontinued Operations)
68153.06 60145.06
13.3%
65447.02
4.1%
195033.34 156963.37
24.3%
8731.70 7693.47
13.5%
7627.82
14.5%
26637.63
15889.14
67.6%
448.54
491.23
(8.7%)
220.31
103.6%
965.33
1019.11
77333.30 68329.76
13.2%
73295.15
5.5%
222636.30 173871.62
(5.3%)
28.0%
6590.67 7773.57
(15.2%)
4395.86
49.9%
17592.88
13580.20
29.5%
MARGINS (%)
8.5%
11.4%
6.0%
7.9%
7.8%
Profit after tax (from Continuing +Discontinued Operations)
4920.04 6048.80
(18.7%)
3145.80
56.4%
13002.36
10392.42
25.1%
MARGINS (%)
6.4%
8.9%
4.3%
5.8%
6.0%
Note: 1. Wind Power Business operations discontinued as at 31.07.2022, 2. Bus Operations discontinued as at 31.12.2022
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GOODS TRANSPORT (GT)
Rupees in Lakhs
Revenue
Q3
YoY
Q2
QoQ
YoY
FY23
FY22 Growth (%)
FY23 Growth (%) 9MFY23 9MFY22 Growth (%)
67511
59612
13.3%
65001
3.9%
193400 154976
24.8%
EBITDA
11131
12798
(13.0%)
10113
10.1%
31220
28083
11.2%
Q3FY23 records the highest ever revenue @ Rs.67511 lakhs driven by demand across all sectors and addition of new MSME and Corporate clients
Margin (%)
16.5%
21.5%
15.6%
16.1% 18.1%
EBIT
7283
9273
(21.5%)
6619
10.0%
20856
18650
11.8%
Margin (%)
10.8%
15.6%
10.2%
10.8% 12.0%
Addition of new branches supporting revenue increase to all time high
Revenue
EBITDA
59612
58762
60887
65001
67511
12798
12182
9976
10113
11131
Increase in freight rates by 5% for non contractual customers from Mid-December 2022
Q3FY22
Q4 FY22
Q1 FY23
Q2 FY23
Q3FY23
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GT PERFORMANCE Revenue Analysis
• GT revenue increased by 25% 9MYoY, 13% YoY and 4% QoQ due to :
Strategic Planning Contribution from new branches Addition of new customers A Strong Revival in
Economy which helped in a growing demand from MSME and Corporates.
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•
Volumes up by 23% 9MYoY from 2340082 tons to 2880954 tons, 15% YoY from 877305 tons to 1009214 tons and 4% QoQ from 966792 tons to 1009214 tons.
Realisation per Ton increases by 1.4% 9M YoY, decreases 1.6% YoY, & decreases 0.5% QoQ. Competitive rates offered on Routes connected with New Branches. Increase in freight rates by 5% for non contractual customers from mid Dec-22.
• 127 new Branches added in 9MFY23 and 30 new Branches added in Q3FY23- enhanced VRL Logistics presence in
hitherto untapped markets. Focus on Volume Growth is going to continue by Expansion of Branch Network.
•
Branches added in 9MFY23 & FY 2021-22 contributed ~12% of total tonnage in Q3FY23.
• Continued shift of Customer base to VRL from unorganized sector as a result of increase in compliance
requirements under GST.
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GT – TONNAGE AND REALISATION
GT Tonnage (in '000 tons)
847
877
887
905
967
1009
616
Q1 FY22
Q2 FY22
Q3 FY22
Q4 FY22
Q1 FY23
Q2 FY23
Q3FY23
10900+ TONS SERVICED ON A DAILY BASIS (Q3 FY2023)
6679
6755
6589
6691
6683
6649
6205
Q1 FY22
Q2 FY22
Q3 FY22
Q4 FY22
Q1 FY23
Q2 FY23
Q3 FY23
Realisation per Ton (in Rs)
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CONSISTENT GROWTH IN TONNAGE & REALISATION
5179
5429
5698
6047
5825
6584
6268
3696
4180
4689
4972
2323
2363
2406
2596
2619
2624
2659
2787
2959
2541
3227
3416
2094
2010-11 2011-12 2012-13 2013-14 2014-15 2015-16 2016-17 2017-18 2018-19 2019-20 2020-21 2021-22
GT Tonnage (in '000 tons)
Realisation per Ton (RPT)
9M YoY Tonnage increases by 23%
2340
2881
9MFY22
GT Tonnage (in '000 tons)
9MFY23
GT – PROFITABILITY ANALYSIS
YOY
EBITDA
Q3 FY23
Q3 FY22
(% to Revenue)
Difference (%)
16.49%
21.47%
(4.98%)
Fuel cost
30.10%
29.41%
0.69%
Lorry Hire
10.20%
8.63%
1.57%
Vehicle Running, Repairs & Maintenance
6.40%
6.55%
(0.15%)
Bridge & Toll expenses
7.42%
5.98%
1.44%
Hamali (Loading & Unloading Charges)
6.56%
5.92%
0.64%
Employee Cost
14.45%
13.76%
0.69%
Other Expenses
8.39%
8.29%
0.10%
Depreciation
5.70%
5.91%
(0.21%)
EBIT
10.79%
15.56%
(4.77%)
Reasons
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Procurement from retail fuel pumps increased from 53.83% in Q3FY22 to 92.58% in Q3FY23 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 perodically Bulk Purchase of Fuel restarted from mid Dec 2022
Increase in Lorry Hire Kms due to geographical expansion and increase in tonnage. Increase in Lorry Hire charges per Km Increase in hire charges related to last mile collections and deliveries
Increase in Kms covered by New vehicles in overall Kms with lesser maintenance costs.
Increase in number of Toll Plazas, Toll Rates and Increase in Kms by Company owned vehicles
Increase in Loading and Unloading rates per ton
Annual Increments effected from January 22 Increase in number of employees due to addition of new branches
Rest of all other expenses were fairly under control and increased by 0.06%
Reduction in depreciation due to useful life of goods transport vehicles being revised from 8.84 years to 15 years.
Due to Decline in EBITDA margins
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GT – PROFITABILITY ANALYSIS
QoQ
EBITDA
Q3 FY23
Q2 FY23
(% to Revenue)
Difference (%)
16.49%
15.56%
0.93%
Reasons
Fuel cost
30.10%
30.43%
(0.33%)
• Bulk Purchase of Fuel restarted from Dec 15, 2022 • Constant in Fuel rates.
Lorry Hire
10.20%
10.16%
0.04%
• Lorry Hire Charges were under control when compared to Q2FY23, as the
required additional kms due to additional tonnage are covered by company vehicles.
Vehicle Running, Repairs & Maintenance
6.40%
6.63%
(0.23%)
• More kms covered by New Vehicles resulting in lesser maintainace costs
Tyres, Flaps and Re-treading
1.99%
2.32%
(0.33%)
• Increase in efficiency in Tyre usage
Hamali (Loading & Unloading Charges)
6.56%
6.39%
0.16%
• Increase in Loading and Unloading rates per ton
Employee costs
14.45%
14.91%
(0.46%)
Other Expenses
13.82%
13.59%
0.23%
• 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 &increased by 0.16%
Depreciation
EBIT
5.70%
5.37%
10.79%
10.18%
0.33%
0.60%
• Due to Increase in Capex
• Due to Increase in EBITDA
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BUS OPERATIONS (Discontinued Operations)
The Company has, during the current quarter, executed a Business Transfer Agreement with a promoter group company 'Vijayanand Travels Private Limited' for the sale / transfer of its Bus Operations Business Undertaking (Bus Operations) as a going concern on a slump sale basis for an aggregate sale consideration of ₹ 23000 lakhs based on the approval received from the Board of Directors vide its meeting dated 15 September 2022 and from its shareholders on 31 October 2022. The Company has received an advance of ₹ 22500 lakhs from the buyer against the abovementioned sale consideration. The approval from the relevant regulatory authorities for the sale transaction has been obtained on 25 January 2023 and hence, the profit before tax of ₹ 17690 lakhs on this sale (net of expenses incurred till 31 December 2022 of ₹ 11 lakhs), has not been given effect to in these Financial Results.
Sale of Bus Operations– considered as “Assets held for sale” as on 31.12.2022
Rupees in Lakhs Revenue
EBITDA Margin (%)
EBIT Margin (%)
Q3
YoY
Q2
QoQ
YoY
FY23
FY22
Growth (%)
FY23
Growth (%)
9MFY23
9MFY22 Growth (%)
8732
1882 22%
1569 18.0%
7483
17%
7322
19%
25840
14267
81%
1108 14.8%
775 10%
70%
102%
381 5%
20 8%
394%
7822%
4258 16%
3290 13%
757 5%
(232) (2%)
462%
1518%
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SALE OF POWER
The Company had, during the previous quarter, executed a Business Transfer Agreement for the sale / transfer of its Wind Power Business Undertaking (Sale of Power) as a going concern on a slump sale basis for an aggregate sale consideration of ₹ 5285 lakhs. The approval from the relevant regulatory authorities for the sale transaction has been obtained on 10 January 2023 and hence, the profit before tax of ₹ 1034 lakhs on this sale (net of expenses incurred till 31 December 2022 of ₹ 6 lakhs), has not been given effect to in these Financial Results.
Sale of Wind Power Business Undertaking– considered as “Assets held for sale” as on 31.07.2022, thereby eliminating contribution from this segment from August 2022
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J&K 05
CH 01
PB 25
RJ 24
HP 08
HY 26
MP 18
UK 07
DL 37
UP 44
CG 09
UT(PY) 05
MH 137
GOA 07
KA 220
KL 42
TG 55
AP 94
TN 140
GJ 81
UT 2
Note : Map not to scale
BR 13
JH 09
OR 17
WB 35
TR 01
GT NETWORK
• Market Leader In LTL Segment
• Hub & Spoke Model
ARP- 01
AS- 08
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•
Focus on Geographical Expansion.
127 Branches Added in 9MFY23
Operations:
• 23 States & 4 Union Territories
•
•
1070 Branches
47 Strategically Placed Hubs
GT VEHICLES & CAPACITY
No of GT Vehicles Capacity (tons)
31988
Total GT Vehicles : 5433 GT vehicles carrying Capacity: 79535 tons (excluding Cranes and Tankers)
7200
8140
14904
15223
613
1195
1015
751
1806
647
543
22
886
<5 tons
5 - 10 tons
10 - 15 tons
15 - 20 tons
20 - 25 tons
25 - 30 tons
>30 tons
1.50%
9.05%
10.23%
40.22%
18.74%
19.14%
1.11%
Percent of total capacity
VRL has 1294 vehicles > 15 years, as of December 31, 2022 with a total capacity of 14695 tons, whereas VRL has been continuously adding New Capacity.
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GT WIDE RANGE OF SECTORS SERVED
Sports Goods
Educational
Goods
Machinery
FMCG
Agriculture Products & Implements
Pharma
Leather Products
Garments
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 accounts hardly ~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 127 new branches in 9MFY23. 68 new branches added in Q1FY23, 29 new branches added in Q2FY23 & 30 new branches added in Q3FY23 . Closed : 13 branches. Total number of branches as on 30.09.2022 is 1070.
Expansion of existing TPT / Branch Area and increasing Branch Density in Key Markets like Pune, Ahmedabad, Raipur, Salem, Chennai, Kanpur, Delhi, Kolkata, Patna, Guwahati, Siliguri, Cuttack, etc.
Number of GT Vehicles increased from 4816 vehicles in FY22 to 5433 vehicles in 9MFY23. Total New GT vehicles added in 9MFY23- 883 vehicles (Vehicles added in Q1FY23- 312, Q2FY23– 248, Q3FY23– 323), Sold/scrapped – 266 vehicles, Net vehicle addition in 9MFY23 is 617 vehicles.
Bulk Purchase of Fuel restarted from Dec 15, 2022. Procurement of Bulk purchase to increase henceforth from December 2022
Increase in freight rates by 5% for non contractual customers from Mid-December 2022
CAPEX of Rs. 27620.72 lakhs was incurred in 9MFY23 out of which GT segments capex was 25248.98 lakhs
CAPEX of Rs. 10693.38 lakhs was incurred in Q3FY23 out of which GT segments capex was 9990.05 lakhs
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KEY DEVELOPMENTS
Long Term ICRA Credit Rating improved to A+ (positive) from A+(stable)
Management is focusing on high growth and high margin Goods transport segment as evident from exiting
1. Bus Operations 2.Wind Power segment 3. Sale of an Aircraft
Business Transfer Agreement- Bus Operations has been executed as on 29.12.2022. Consideration and Approval from relevant Regulatory Authorities received as on date
Sale of Wind Power Business Undertaking– considered as “Assets held for sale” as on 31.07.2022, thereby eliminating contribution from this segment from August 2022
Net debt decreased from Rs. 12989.88 lakhs as on Mar 31, 2022 to Rs. 4569.69 lakhs as on 31.12.2022. Consideration from sale of Business units predominantly used for repayment of debts.
94.2% of the GT vehicles are debt free
The Board of Directors has approved a proposal to buy back up to 8,75,000 fully paid up equity shares having a face value of ₹ 10 each at a price of ₹ 700 per Equity Share (“Buyback Price”) for an amount not exceeding ₹ 6,125 lakhs through the tender offer route
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Continued focus on higher margin GT segment
Focus on increasing Geographic presence of GT Business in hitherto untapped markets
to Volume Growth. Priority Increase in Freight Rates as & when required
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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