VRLLOGNSE20 May 2023

VRL Logistics Limited has informed the Exchange about Investor Presentation

VRL Logistics Limited

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: 20.05.2023 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

FY2022-23 Earnings Presentation

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.

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 offering varied Commodity mix

INDIA’S LARGEST LTL SERVICE PROVIDER

8 LAKH + CUSTOMER BASE

20000+ WORKFORCE led by experienced management

95% DEBT FREE VEHICLES

1126 GOODS TRANSPORT BRANCHES

HIRED VEHICLES ENGAGED ON NEED BASIS

49 MASSIVE TRANSHIPMENT HUBS

412 CRORES CAPEX INCURRED DURING THE YEAR

54 lakhs+ Sq ft OF TRANSHIPMENT HUB AREA

11601 TONS ADDITIONAL CARRYING CAPACITY ADDED DURING THE YEAR

184 NEW BRANCHES ADDED DURING THE YEAR

5671 OWNED GOODS TRANSPORT VEHICLES

10700+ TONS DELIVERED ON DAILY BASIS (FY23)

VRL - KEY DIFFRENTIATORS

India – 73% Goods transported by road

 Long Term Sustainability

 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 5671 GT vehicles

Distribution Network



Efficient operations with largest fleet and minimal outsourcing of transportation

 Robust pan India network across 25 states, 4

union territories, having 1126 branches, including 49 massive transhipment hub facilities

Vehicles Specially Designed by

OEM`s / in-house

 Ensures Higher Payload

Owned Vehicle operations, maintenance

 Entry Barrier

& Driver management barriers

VRL - KEY DIFFRENTIATORS

More than 36% vehicles Fully

Depreciated

More than 95% vehicles Debt Free

Financial performance & position

EBITDA Margins

Cash Profits/Cash EPS

Minimal Outsourcing of transport

Bulk procurement policy

Moving towards New Age Vehicles



Lower Costs

No Associated finance costs

Track record of growth and robust financial position

@17% (Q4FY23) – Highest in the industry

High cash profit margins & Cash EPS

No Additional Margin to be Paid to Outside Vehicle Service Provider

Economies of scale

Addition of Electric and CNG vehicles

Standalone Strengths

 Most efficient collection mechanism

• Annual bad debt ~ Rs.30 lakhs on ~ Rs.2,600 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 major single customer or any major single product.

 Own workshop, Own fittings, Own Body Building, Own Design

•

Lowest cost Operator.

 Double digit business volume growth.

 Much lower Debt Level – INR 168 Crs.

•

Least cash burnout for servicing and repayment.

 PROACTIVELY preparing for Scrapping policy with aggressive capex plan

• VRL has 1189 vehicles > 15 years, as of March 31, 2023 with a total capacity of 12946 tons

KEY POINTS

GOODS TRANSPORT REVENUE ( Rupees in lakhs)

GOODS TRANSPORT EBITDA (Rupees in lakhs)

266287

41600

218037

FY22

FY23

39136

FY22

TONNAGE DELIVERED (TONS)

21% YOY

3911956

3226655

BRANCHES (No’s) 1126

CAPACITY (TONS)

82657

18% YOY

956

16% YOY

71056

FY23

CAPEX ( Rs in Lakhs)

41220

111% YOY

19550

FY22

FY23

FY22

FY23

FY22

FY23

FY22

FY23

FINANCIALS

(INR in Lakhs)

FY23

FY22 Growth (%)

FY23

QoQ

YoY

Growth (%)

FY23

FY22 Growth (%)

Total Income

Total Expenses

70287.99

60054.62

17%

68601.60

64265.66

53158.31

21%

63543.15

266286.66

218037.10

22%

246034.95

197567.05

25%

Profit Before Tax from Continuing Operations

Profit for the Period from Continuing Operations

Profit Before Tax from Discontinued Operations

Exceptional Items Profit for the Period from Discontinued Operations (including Exceptional Items)

6022.33

6896.31

(13%)

5058.45

19%

20251.71

20470.05

(1%)

6097.25

5230.01

17%

3,776.21

61%

16613.75

15615.22

0.00

512.71

18720.45

0.00

1532.22

0.00

3363.50

519.17

548%

18720.45

0.00

13,220.45

388.83

3300%

1,143.83

1056%

15706.31

396.04

3866%

Profit for the Period

19317.70

5618.84

244%

4920.04

293%

32320.06

16011.26

102%

Note: 1. Wind Power Business operations discontinued w.e.f 31.07.2022, 2. Bus Operations discontinued w.e.f 31.12.2022

CONTINUED OPERATIONS - GOODS TRANSPORT (GT)

Rupees in Lakhs

Revenue

EBITDA

YoY

FY23

FY22

Growth (%)

FY23

QoQ

YoY

Growth (%)

FY23

FY22 Growth (%)

70287.99

60054.62

11878.60

12156.32

17.04%

(2.28%)

68601.60

10776.20

2.46%

10.23%

266286.66

218037.10

22.13%

41599.84

39136.20

6.30%

Margin (%)

16.90%

20.24%

EBIT Margin (%)

PBT

Margin (%)

7350.63 10.46%

6022.33

8.57%

8072.90 13.44%

6896.31

11.48%

(8.95%)

(12.67%)

15.71%

6565.59 9.57%

5058.45

7.37%

15.62%

17.95%

11.96%

25685.56 9.65%

24685.85 11.32%

4.05%

19.05%

20251.71

20470.05

(1.07%)

7.61%

9.39%

PAT

6097.25

5,230.01

16.58%

3,776.21

61.46%

16613.75

15615.22

6.39%

Margin (%)

8.67%

8.71%

5.50%

6.24%

7.16%

60055

12156

Q4FY22

68602

10776

Q3FY23

REVENUE

EBITDA

70288

11879

Q4FY23

Q4FY23 records the highest ever revenue @ Rs.70288 lakhs driven by demand across all sectors and addition of new MSME and Corporate clients

Addition of new branches supporting revenue increase to all time high.

Company to focus on high growth oriented Goods transport Business going forward

CONTINUED OPERATIONS - GOODS TRANSPORT (GT)

Details of Unallocable segment Revenue/Expenses in earlier quarters are now a part of continued operations

Rupees in Lakhs

FY23

FY22

FY23

FY22

Unallocable Revenue Other Income Total revenue (A) Total expense (B)

Depreciation (C)

Other Expenditure (net of other Income) as disclosed in earlier segment report - (A-B-C)

795.40 469.15 1264.55 1291.88

358.75

630.05 662.18 1292.23 1316.43

305.84

641.61 448.54 1090.15 1445.19

362.34

2429.16 1434.48 3863.64 5389.73

1,381.26

2617.57 1,681.59 4298.86 5425.97

1239.93

(386.08)

(330.04)

(717.38)

(2907.35)

(2367.04)

GT EBITDA previously disclosed

11905.93

12182.12

11131.24

43125.93

40263.30

ADD Total Revenue (A)

1264.55

1292.23

1090.15

3863.64

Less: Total Expenses (B)

1291.88

1316.43

1445.19

5389.73

4298.86

5425.97

Round-off

(1.6)

GT EBITDA as per Press Release

11878.60

12156.32

10776.20

41599.84

39136.20

Note. Q4FY23 and FY23 numbers depicted above are to facilitate comparisons with earlier periods

GT PERFORMANCE Revenue Analysis

• GT revenue increased by 22% 12MYOY, 17% QYoY and 2% 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.

•

Volumes up by 21% YoY from 3226655 tons to 3911956 tons , 16% QYoY from 886573 tons to 1031002 tons and 2% QoQ from 1009214 tons to 1031002 tons.

Realisation per Ton increases by 1.3% 12MYoY, increases 1% YoY, & increases 0.1% QoQ. Competitive rates offered on Routes connected with New Branches.

• 184 new Branches added in FY23 and 57 new Branches added in Q4FY23- expanded VRL Logistics presence in hitherto untapped markets. Focus on Volume Growth is going to continue by Expansion of Branch Network.

•

Contribution of Tonnage from Branches added in FY 23:

in FY23 : Booking – 4.46%, Delivery – 5.12% in Q4FY23 : Booking – 6.79%, Delivery – 7.98%

• Continued shift of Customer base to VRL from unorganized sector as a result of reduction in threshold limit for

E-Invoice & Increase in compliance requirements under GST.

GT – PROFITABILITY ANALYSIS

EBITDA

Fuel cost

FY23

FY22

(% to Revenue)

Difference (%)

15.62%

30.43%

17.95%

29.67%

(2.33%)

0.76%

Lorry Hire

9.29%

7.41%

1.88%

Vehicle Running, Repairs & Maintenance Bridge & Toll expenses

6.41%

7.07%

(0.66%)

7.28%

6.16%

1.12%

Tyre Costs

Hamali (Loading & Unloading Charges) Employee Cost

1.96%

6.31%

2.42%

5.94%

(0.46%)

0.38%

15.58%

15.91%

(0.33%)

Other Expenses

Depreciation

7.12%

5.98%

7.47

6.63%

(0.35%)

(0.65%)

EBIT

9.65%

11.32%

(1.68%)

Reasons

•

• •

• • •

•

Procurement from high cost retail fuel pumps increased from 57.09% in FY22 to 90.67% in FY23 as there was an increase in rates for bulk purchase of Diesel from refineries. Bulk Purchase of Fuel restarted from mid Dec 2022 Increase in procurement costs

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

Lower Maintenance costs due to addition of New vehicles

Increase in number of Toll Plazas, Toll Rates and Increase in Kms by Company owned vehicles

Due to increase in Kms covered by New Vehicles

Increase in Loading and Unloading rates per ton

Being a fixed cost, percentage to revenue declined on account of increase in tonnage and revenue, inspite of Annual Increments effected from January 22

Rest of all other expenses were fairly under control and decreased by 0.35%

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

GT – PROFITABILITY ANALYSIS

YOY

EBITDA

Fuel cost

Lorry Hire

Rent

Bridge & Toll expenses

Vehicle Running, Repairs & Maintenance

Q4 FY23

Q4 FY22

(% to Revenue)

16.90%

30.95%

20.24%

28.55%

7.88%

7.26%

Difference (%)

(3.34%)

2.40%

0.62%

2.02%

7.61%

1.55%

6.41%

0.47%

1.20%

6.55%

6.91%

(0.36%)

Tyre Costs

1.46%

2.03%

(0.56%)

Hamali (Loading & Unloading Charges) Employee Cost

6.23%

5.98%

0.25%

15.42%

16.02%

(0.60%)

Other Expenses

Depreciation

4.97%

6.44%

5.05%

6.80%

(0.09%)

(0.36%)

EBIT

10.46%

13.44%

(2.98%)

•

• • •

•

Reasons

Increase in Fuel Procurement price by 3.21%

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 number of branches as a part of Geographical expansion

Increase in number of Toll Plazas, Toll Rates and Increase in Kms by Company owned vehicles

Lower Maintenance costs due to addition of New vehicles

Due to increase in Kms covered by New Vehicles

Increase in Loading and Unloading rates per ton

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 increased by 0.09%

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

QoQ

EBITDA

Fuel cost

Lorry Hire

Vehicle Running, Repairs & Maintenance

GT – PROFITABILITY ANALYSIS

Q4 FY23

Q3 FY23

(% to Revenue)

Difference (%)

16.90%

15.71%

1.19%

30.95%

29.71%

1.24%

7.88%

10.04%

(2.15%)

Reasons

•

Increase in Consumption qty due to increase in Company Owned Vehicle Kms Compensated with Decrease in Procurement costs by 0.64%

• Decrease in Lorry Hire Kms, due to increase in Company Owned Vehicle

Kms..

6.55%

6.35%

0.21%

• Increase in Kms covered by Company Owned Vehicles

Bridge & Toll expenses

7.61%

7.30%

0.32%

Rent

Hamali (Loading & Unloading charges)

2.02%

6.23%

1.81%

6.45%

0.21%

(0.22%)

• Increase in number of Toll Plazas, Toll Rates and Increase in Kms by

Company Owned Vehicles

• Addition of new branches in Q4 FY23 and Expansion of area in some

existing branches and Hubs.

• Inline with Tonnage

Employee costs

Other Expenses

Depreciation

EBIT

15.42%

15.22%

0.19%

• Increase in number of employees due to addition of new branches

6.43%

6.44%

10.46%

7.42%

6.14%

9.57%

(0.99%)

0.30%

0.89%

• Rest of all other expenses were fairly under control &decreased by 0.99%

• Due to Increase in Capex

• Due to Increase in Depreciation

GT – TONNAGE AND REALISATION

GT Tonnage (in '000 tons)

847

877

887

905

967

1009

1031

616

Q1 FY22

Q2 FY22

Q3 FY22

Q4 FY22

Q1 FY23

Q2 FY23

Q3 FY23

Q4 FY23

11400+ TONS SERVICED ON A DAILY BASIS (Q4 FY2023)

6679

6755

6589

6691

6683

6649

6655

6205

Q1 FY22

Q2 FY22

Q3 FY22

Q4 FY22

Q1 FY23

Q2 FY23

Q3 FY23

Q4 FY23

Realisation per Ton (in Rs)

CONSISTENT GROWTH IN TONNAGE & REALISATION

6047

5825

6268

5698

5429

4972

5179

4689

4180

3696

2323

2363

2406

3416

2094

2596

2619

2624

2659

2787

2959

2541

6584

6669

3912

3227

2010-11

2011-12

2012-13

2013-14

2014-15

2015-16

2016-17

2017-18

2018-19

2019-20

2020-21

2021-22

2022-23

GT TONNAGE ('000 TONS)

REALISATION PER TON

Goods Transport Business – B2B Focus

Goods Transport Revenue breakup

Less than truckload 86%

Full truck load 8%

Courier & others 6%

Focus on high margin LTL business • LTL involves transportation of consignments belonging to multiple customers in single vehicle. • Our wider reach and adequate infrastructure helps in aggregating less than truckload consignments from various clients and sending them to the desired destinations

Pan-India Hub and Spoke model of distribution: • Significant flexibility to transport a broad range of parcel sizes for both regional and national customers and also positioning as single stop service provider for multiple destinations.

B2B Focus - Diversified sectors and customers • The primary focus is on B2B customers with the top ten customers contributing not more than 3% of total Goods transport business revenue.

GT NETWORK – update map

 Presence in 25 States & 4 Union

territories.

 1126 Goods Transportation Branches

AS- 09

ML- 01

WB 36

TR 01

BR 14

JH 09

OR 19

 Connected with 49 Massive

Transshipment Hubs

 184 New Branches added in FY 2022- 23 helps in expanding VRL’s presence in hitherto untapped markets.

J&K 06

CH 01

PB 28

RJ 24

HP 10

HY 27

MP 18

UK 08

DL 38

UP 54

CG 09

UT(PY) 05

MH 143

GOA 08

KA 222

KL 48

TG 58

AP 95

TN 144

GJ 88

UT 3

Note : Map not to scale

HUB & SPOKE OPERATING MODEL

COLLECTION

CONSOLIDATION

DISTRIBUTION

OWNED HUBS

TOTAL HUB CAPACITY (Owned + Leased)

MUMBAI BHIWANDI

MANGALURU

HUBBALLI VARUR

VIJAYAPURA

SURAT

DAVANAGERE

OWNED HUBS (Sq Feet)

LEASED HUBS (Sq Feet)

1462122

3976635

BALLARY

MYSURU

GANGAVATI

TOTAL Sq Feet

5438757

GT VEHICLES

5671 Company owned vehicles

1 Ton to 36 Tons Carrying Capacity

 1338 vehicles added in FY 23. Net Vehicle increase (after scrappage) is 855 Vehicles

 Total

Goods

Transportation

Vehicles Capacity at 82657 tons

 Handling 10700+ tons on a daily

basis in FY23

 Additional Usage of 1000+ Hired

Vehicles

 Additional Order placed for 1667 Goods Transportation vehicles of TATA and Ashok Leyland Make

GT VEHICLES & CAPACITY

No of GT Vehicles Capacity (tons)

34282

Total GT Vehicles : 5671

GT vehicles carrying Capacity (excluding Cranes and Tankers) : 82657 tons

7670

8785

14904

617

1226

1063

815

1938

647

533

886

<5 tons

5 - 10 tons

10 - 15 tons

15 - 20 tons

20 - 25 tons

25 - 30 tons

>30 tons

1.48%

9.28%

10.63%

41.48%

18.03%

1.07%

Percent of total capacity

VRL has 1189 vehicles > 15 years, as of March 31, 2023 with a total capacity of 12946 tons, whereas VRL has been continuously adding New Capacity.

WIDE RANGE OF SECTORS SERVED

Electronics

Sports Goods

Pesticides

Agriculture Products & Implements

FMCG

Pharma

Leather Products

Readymade Clothes

Stationery

Expertise In handling variety of Commodities

Machinery

Educational Goods

Diversified 800000+ Customer Base Across sectors

Textile

Electrical

Glass

No single customer contributing over ~1% of Total Revenue

Food Products

Hardware

Metal

Automotive parts

Spare parts

Contribution from Top 10 customers accounts not more than 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

KEY DEVELOPMENTS

Addition of 184 new branches in FY23. Q1FY23 – 68 new branches, , Q2FY23- 29 new branches, Q3FY23- 30 new branches, Q4FY23- 57 new branches . Closed : 14 branches. Total number of branches as on 31.03.2023 is 1126.

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 5671 vehicles in FY23 . Total New GT vehicles added in FY23- 1338 vehicles (Vehicles added in Q1FY23- 312, Q2FY23– 248, Q3FY23– 323, Q4FY23– 455), Sold/scrapped – 483 vehicles, Net vehicle addition in FY23 is 855 vehicles.

Bulk Purchase of Fuel restarted from Dec 15, 2022. Overall Bulk purchase increases to 28.15% of Total Quantity in Q4FY23 from 7.42% in Q3FY23.

The company is in the process of applying for Registered Vehicle Scrappage Facility ( RVSF )

CAPEX of Rs. 41219.91 lakhs was incurred in FY23 out of which GT segments capex was 38388.18 lakhs

Net debt increased from 12989.88 lakhs as on 31.03.2022 to Rs.16794.12 lakhs as on 31.03.2023.

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

The Company has, during the previous quarter, executed a Business Transfer Agreement with a promoter group company for the sale / transfer of its Bus Operations Business as a going concern on a slump sale basis. The transaction has been completed in Q4FY23

The Company has, during the year, executed a Business Transfer Agreement for the sale / transfer of its Wind Power Business as a going concern on a slump sale basis. The transaction has been completed in Q4FY23

The Board of Directors at its meeting held on 30 January 2023 had approved the proposal to buy back up to 8,75,000 fully paid up equity shares having a face value of ₹ 10 each (“Equity Shares”) representing up to 0.99% of the total number of equity shares in the paid-up equity share capital of the Company, at a price of ₹ 700 per Equity Share for maximum amount not exceeding Rs. 6125 lakhs. The shares have been extinguished on 17 April, 2023.

The Board of Directors has, at its meeting held on 20 May 2023, granted an in-principle approval for the sale / transfer of the Company’s ‘Transportation of Passengers by Air’ Business by way of a slump sale, (including to any related party), subject to receipt of all applicable clearances and approvals from the concerned regulatory authorities.

The Board of Directors have recommended a dividend of ₹ 5 per equity share of INR 10 each, in their meeting held on 20 May 2023, which is subject to the approval of the shareholders at the ensuing Annual General Meeting.

KEY DEVELOPMENTS – PROPOSED CAPEX PLAN

Proposed capacity addition

1,667 customized trucks

Period within which capacity is to be added

lnvestment required

Fleet addition is expected to be made during FY2024.

The capex planned, at list price, would translate to a total outlay of Rs.697 crores approx. including the cost of Chassis at list prices, body building, registration, insurance and margin for contingencies. (please refer notes below) Given the past experience, relationship with the vendors as also the economies of scale the company expects a significant reduction in the cost of chassis in the total outlay. The Company has crystalized the fleet addition requirements as stated in the table above and in the process of the negotiating with the CV suppliers for firming up the prices for such planned fleet addition.

Mode of Financing

Mix of Vehicle loans from Banks and internal accruals

Rationale

Ongoing implementation of Vehicle Scrapping Policy announced by the Government of India envisages the company to replace its existing older vehicles. During FY 2024, the company is expected to withdraw around 1189 vehicles that are more than 15 years in operation

For more details please refer our communication dated 15.04.2023 uploaded in BSE India websites https://www.bseindia.com/stock-share-price/vrl-logistics-ltd/vrllog/539118/corp-announcements/

Net Debt to Equity

LEVERAGE METRICS

Gearing Ratio

12880

17706

10144

12990

16794

0.2

FY19

0.3

FY20

0.2

FY21

0.2

FY22

0.2

FY23

Net debt/Equity(x)

Net debt position (Lakhs)

16.62%

22.30%

14.52%

16.63%

14.70%

FY19

FY20

FY21

FY22

FY23

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, net of cash and cash equivalents

Return metrics

Leverage metrics

23.2

8.4

7.1

9.8

7.65

0.5

0.6

0.4

0.3

0.4

FY 19

FY 20

FY 21

FY 22

FY 23

Note : EBITDA is considered only for continued ops, for FY23

Net debt/Ebitda(x)

Ebitda/finance cost(x)

Return (Profit for the year+Finance costs) on Average capital employed

Return(Profit for the year) on average equity

14%

15%

16%

14%

11%

27%

26%

23%

17%

FY 19

FY 20

FY 21

FY 22

FY 23

* For FY23 profits for the year is taken only related to continued ops. The Capital Employed &Equity are takes an per BS.

RECEIVABLES

Trade receivables at 11 days of total revenue in FY23

High-quality and diversified customer base

Conservative credit policy. Efficient collection process

Efficient Collection Mechanism & Rotation of working capital

FY18

FY19

FY20

FY21

FY22

FY23

Trade Receivables From 15 days in FY18 to 13 days in FY21 to 11 days in FY 23

NET CASH GENERATEDFROM OPERATIONS & CASH EPS( POST TAX)

Net Cash generated from operating Activities (Lakhs)

37076

31834

27162

FY21

FY22

FY23

CASH EPS: Net Cash generated from operating activity / Number of shares

30.75

41.97

36.03

FY21

FY22

FY23

Healthy cash earnings per share indicates the company's ability to generate free cash flow consistently over the years

Note: Net cash generated from Operating activity as per Cash Flow Statement

STATE OF THE ART TECHNOLOGY

Operations Monitoring System : IT systems in place to monitor vehicle movement, fuel consumption per km for each vehicle , distance travelled , driver advances

Advance Consignment Management system : Advanced consignment management system to ensure real time tracking

E-way bill, E-invoice GST Compliance - Complete automation of the compliance process by means of integrating the API with Government Software

ERP system: In- house developed ERP system ensuring real time operations and movement of consignments

SMS update system: SMS system updates for arrival of consignments, vehicles, and schedule alerts

Integrated Accounts Software : Enabling online Real time Business operations across all networks

Software alert systems: Customized software alert to track vehicle maintenance and route planning

Real Time Report Generation : Managers have the ability to generate real time reports instantly from their Smartphones

GPS and CCTV monitoring: GPS tracking devices in both hired and owned vehicles to monitor vehicle movement

Cash Management System: Cash management system controlled through a centralized banking system with real time reporting .

Alternative and Backup Systems : Backup systems and alternative procedures in order to tackle any disruption in the normal course of operations, capable disaster recovery & business continuity infrastructure.

OPERATIONAL CAPABILITIES

Fuel procurement strategies to reduce overall expense

Dedicated in-house maintenance & vehicle body design facilities



Procurement of fuel directly from refineries and private petroleum companies Usage of Bio fuel (6% of total fuel consumption in FY 22 ) helps in reducing overall fuel expenses Tie ups with fuel pumps across India for fueling during transits Usage of RFID tags to monitor real time fuel usage



Preventive in-house maintenance program designed to increase the life of vehicles Technology to fabricate lighter and longer bodies to reduce the overall weight of the vehicle and ensure higher payload Sourcing of longer custom made chassis resulting in additional space as compared to outside vehicles

 monitor real time fuel usage

Genuine Spare parts procurement at competitive rates

Ability to recruit and retain Experienced Drivers

Economies of Scale

  Major OEM’s have a dedicated spare parts outlets



in our premises Direct procurement from smaller manufacturers OEMs for other spare parts Tyre, Battery procurement at competitive rates

  Usage of proprietary ERP system to maintain



 

Recruiting drivers as full time employees with statutory benefits Large and Experienced pool of Drivers Performance evaluated and incentives provided based on various criteria  Group Insurance facility  Driver training facility at Hubballi

control over costs

Promoters

Dr. Vijay Sankeshwar Chairman and Managing Director

Honored With Padmashri Award ( Fourth Highest Civilian Award) in 2020 for contribution to Trade & Industry

Honored With Karnataka Rajyotsava Award during 2019, The second-highest Civilian Honor given by the Government of Karnataka.

Actively involved in Day-To-Day management, Has over

Four decades of Experience in the Logistics Industry.

Former Member Of Parliament In 11th, 12th & 13th

Lok Sabha

Honorary Doctorate by Karnataka University.

Recipient of several Awards including the ‘Udyog Ratna’

by Institute of Economic Studies New Delhi.

‘Transport Personality of the Year’

Dr. Anand Sankeshwar Managing Director

Honorary Doctorate by Karnataka

State Open University

Actively Involved In Day-To-Day Business Operations.

Recipient Of Awards - ‘YOUTH ICON’ By

Annual Business Communicators Of India ‘Best 2nd Generation Entrepreneur’ By TiE Global USA

“INSPIRATIONAL LEADER OF NEW INDIA AWARD

The Most Admired Entrepreneur Of The Year (Logistics)

By The RISING LEADERSHIP AWARDS

The Prestigious “GAME CHANGER AWARD” Award

By Media News 4u.com

STRATEGY

Continued focus on higher margin GT Business

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

Shareholding Pattern as on Mar 31, 2023

1.20%

2.35%

8.04%

Shareholding Pattern

Promoter

Mutual Funds

24.24%

64.17%

Foreign Portfolio Investors

General Public

Others

BSE SENSEX v/s VRL SHARE PRICE

Closing Price

VRL BSE SENSEX

As on 01.04.2022

As on 31.03.2023

Change in (%)

491.8 59276.7

632.6 58991.5

28.63% (0.48%)

High of 704.7 on20/07/2022

150

140

130

120

110

100

VRLLOG

BSE Sensex

For Further discussions or Queries, Please contact

Sunil Nalavadi Chief Financial Officer +91 93425 59298 cfo@vrllogistics.com

← All Transcripts VRLLOG Stock Page →

VRL Logistics Limited has informed the Exchange about Investor Presentation

Market Movers