VRLLOGNSE7 August 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 for the quarter ended 30th June 2023 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: 07.08.2023 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

Q1 FY2023-24

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 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

8 LAKH + CUSTOMER BASE

20000+ WORKFORCE led by experienced management

49 MASSIVE TRANSHIPMENT HUBS

1140 GOODS TRANSPORT BRANCHES

HIRED VEHICLES ENGAGED ON NEED BASIS

5628 OWNED GOODS TRANSPORT VEHICLES

KEY POINTS- YoY

GOODS TRANSPORT REVENUE ( Rupees in lakhs)

GOODS TRANSPORT EBITDA (Rupees in lakhs)

61730

9422

68310

11081

Q1FY23

Q1FY24

Q1FY23

Q1FY24

BRANCHES (No’s)

1140

1126

TONNAGE DELIVERED (in ‘000 TONS)

CAPACITY (TONS)

CAPEX ( Rs in Lakhs)

8712

11% YOY

904

1002

11% YOY

81885

73616

8541

Q1FY23

Q1FY24

Q1FY23

Q1FY24

Q1FY23

Q1FY24

Q1FY23

Q1FY24

FINANCIALS

Particulars (INR in Lakhs)

Total Income

Total Expenses

YoY

QoQ

FY24

FY23

Growth (%)

FY23

Growth (%)

68,310.05

61,729.74

11%

70,287.99

(3%)

63,749.11

56,849.24

12%

64,265.66

(1%)

Profit Before Tax from Continuing Operations

Profit for the Period from Continuing Operations

4,560.94 3,394.53

4,880.50 3,646.90

(7%) (7%)

6,022.33 6,097.25

(24%) (44%)

Profit Before Tax from Discontinued Operations

Exceptional Items

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

1,725.85

18,720.45

1,289.62

13,220.45

Profit for the Period

3,394.53

4,936.52

19,317.70

Note: 1. Wind Power Business operations discontinued from August 2022, 2. Bus Operations discontinued from January 2023

VRL - KEY DIFFRENTIATORS

India – 66% 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 5628 GT vehicles

Distribution Network



Efficient operations with largest fleet and minimal outsourcing of transportation

 Robust pan India network across 24 states, 5

union territories, having 1140 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

 ~31% vehicles Fully Depreciated

~ 89% 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

@16% (Q1FY24) – Amongst the best 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(FY23) ~ Rs.30 lakhs on ~ Rs.2,600 Cr. Revenue. • Hardly any collectible more than 90 days.

•

Trade Receivables at 11 days of Total revenue in FY23

 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 194 Crs.

•

Least cash burnout for servicing and repayment.

 PROACTIVELY preparing for Scrapping policy with aggressive capex plan

• VRL has 981 vehicles > 15 years, as of JUNE 30, 2023 with a total capacity of 9990 tons

GOODS TRANSPORT (GT)

Rupees in Lakhs

YoY

QoQ

GT revenue increases by 11% YOY

Revenue

68310.05

61729.74

10.66%

70287.99

(2.81%)

GT EBITDA increases by 18% YOY

FY24

FY23

Growth (%)

FY23

Growth (%)

EBITDA

11080.6

9422.19

17.60%

11878.6

(6.72%)

Margin (%)

16.22%

15.26%

16.90%

EBIT

6188.23

6085.41

1.69%

7350.63

(15.81%)

Margin (%)

9.06%

9.86%

10.46%

PBT

4560.94

4880.50

(6.55%)

6022.33

(24.27%)

Margin (%)

6.68%

7.91%

8.57%

PAT

3394.53

3646.90

(6.92%)

6097.25

(44.33%)

Margin (%)

4.97%

5.91%

8.67%

GT EBITDA margins @ 16.22%

70288

68310

61730

9422

11879

11081

Q1FY23

Q4FY23

Q1FY24

REVENUE

EBITDA

GT PERFORMANCE Revenue Analysis

• GT revenue increases by 11% YoY and decreases 3% QoQ

•

Volumes up by 10.74% YoY from 904,000 tons to 1002,000 tons and down 2.80% QoQ from 1031,000 tons to 1002,000 tons. .

Realisation per Ton decreases by 0.63% YoY from Rs 6691.44 to Rs.6649.53 and by 0.07% from Rs 6654.47 to Rs.6649.53. Competitive rates offered on Routes connected with New Branches.

• 21 new Branches added in Q1FY24 enhanced VRL Logistics presence in hitherto untapped markets. Focus on Volume

Growth is going to continue by Expansion of Branch Network.

•

Branches added in FY 2022-23 & Q1 FY24 contributed ~ 6% in Booking and 8% in Delivery in Q1FY24 (LTL Tonnage).

• Continued shift of Customer base to VRL from unorganized sector as a result of increase in compliance requirements

under GST.

CONTINUED OPERATIONS - GOODS TRANSPORT (GT)

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

Rupees in Lakhs

Unallocable revenue (A) Unallocable expense (B)

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

GT EBITDA previously disclosed

ADD Total Revenue (A)

Less: Total Expenses (B)

GT EBITDA as per Press Release

FY24

FY23

955.96 1333.87

842.72 1395.58

302.74

316.35

FY23

1264.55 1291.88

358.75

FY23

3863.64 5389.73

1,381.26

(680.65)

(869.21)

(386.08)

(2907.35)

11458.51

955.96

1333.87

11080.60

9975.05

842.72

1395.58

9422.19

11905.93

43125.93

1264.55

1291.88

3863.64

5389.73

11878.60

41599.84

Note. Q1FY24, Q4FY23 and FY23 numbers depicted above are to facilitate comparisons with earlier periods

GT – PROFITABILITY ANALYSIS

YOY

EBITDA

Fuel cost

Lorry Hire

Vehicle Running, Repairs & Maintenance

Stores and spares consumed

Tyres, Flaps and Re-treading

Bridge & Toll expenses

Rent

Q1 FY24

Q1 FY23

(% to Revenue)

Difference (%)

16.22%

15.26%

0.96%

29.76%

30.87%

(1.11%)

8.41%

3.61%

2.07%

1.87%

7.76%

1.97%

9.25%

3.26%

2.82%

2.18%

6.90%

1.80%

6.24%

Hamali (Loading & Unloading charges)

6.59%

Employee Cost

Other Expenses

Depreciation

EBIT

Finance Costs

PBT

PAT

16.28%

15.95%

5.46%

7.16%

9.06%

2.38%

6.68%

4.97%

5.47%

5.41%

9.86%

1.95%

7.90%

5.91%

Reasons

• •

•

Procurement from refineries increased by 31% from 0.75% in Q1-23 to 31.73% in Q1-24 Average procuring cost per litre of Diesel down by 6.08%, from Rs 93.20 in Q1-23 to Rs 87.54 in Q1-24.

Decrease in long haul hired vehicle Kms, as Kms coved by own vehicles increases

Increase in Kms covered by own Vehicles in overall Kms

Decrease due to addition of new vehicles.

Due to increase in Kms covered by new Vehicles

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

Addition of new branches. Expansion in existing branches/TPT area and portion of rent is accounted in deprecation and Interest costs as per Ind AS -116.

Increase in Loading and Unloading rates per ton

Increase in number of employees due to addition of new branches & Internal promotions on selective basis

Inline with increase in Revenue

Due to increase in capex and portion of rent shifted to depreciation as per Ind AS 116.

Due to increase in depreciation costs.

Due to increase in debt & portion of rent shifted to finance costs as per Ind AS 116.

Due to increase in depreciation & finance costs

(0.84%)

0.35%

(0.75%)

(0.31%)

0.86%

0.17%

0.35%

0.33%

(0.01%)

1.75%

(0.80%)

0.43%

(1.22%)

(0.94%)

GT – PROFITABILITY ANALYSIS

QoQ

EBITDA

Fuel cost

Lorry Hire

Vehicle Running, Repairs & Maintenance

Stores and spares consumed

Tyres, Flaps and Re-treading

Bridge & Toll expenses

Hamali (Loading & Unloading Charges)

Rent

Employee costs

Other Expenses

Depreciation

EBIT

Finance Costs

PBT

PAT

Q1 FY24

Q4 FY23

(% to Revenue)

16.22%

29.76%

16.90%

30.95%

Difference (%)

(0.68%)

(1.19%)

8.41%

7.88%

0.53%

3.61%

2.07%

1.87%

7.76%

6.59%

1.97%

4.41%

2.14%

1.46%

7.61%

6.23%

2.02%

(0.80%)

(0.07%)

0.41%

0.15%

0.36%

(0.05%)

16.28%

15.42%

0.86%

5.46%

7.16%

9.06%

2.38%

6.68%

4.97%

6.44%

10.46%

1.89%

8.57%

8.67%

0.49%

0.72%

(1.40%)

0.49%

(1.89%)

(3.70%)

Reasons

•

Procurement from refineries increased by 3.58% from 28.15% to 31.73% Average procuring cost per litre of Diesel down by 1.39%, from Rs 88.78 to Rs.87.54 in Q1-24.

Lorry Hire increase due to increase in kms by hired vehicles in certain geographical regions

Due to increase in mix of higher capacity new vehicles.

Decrease in spares costs as a result of addition of new vehicles

Due to periodic replacement of Tyres.

Increase in number of Toll Plazas & Toll Rates

Increase in Loading and Unloading rates per ton

Due to long term lease agreements for new premises , portion of rent is accounted in deprecation and Interest costs as per IndAs -116 .

Increase in number of employees due to addition of new branches & Internal promotions on selective basis

Due to Increase in Rates and Taxes and Admin costs.

Due to increase in Capex & portion of rent shifted to depreciation as per Ind AS 116.

Due to increase in depreciation costs.

Due to increase in debt & portion of rent shifted to finance costs as per Ind AS 116.

Due to increase in depreciation & finance costs

GT – TONNAGE AND REALISATION

GT Tonnage (in '000 tons)

847

877

887

905

967

1009

1031

1002

616

Q1 FY22

Q2 FY22

Q3 FY22

Q4 FY22

Q1 FY23

Q2 FY23

Q3 FY23

Q4 FY23

Q1 FY24

11000+ TONS SERVICED ON A DAILY BASIS (Q1 FY2024)

6679

6755

6589

6691

6683

6649

6654

6650

6205

Q1 FY22

Q2 FY22

Q3 FY22

Q4 FY22

Q1 FY23

Q2 FY23

Q3 FY23

Q4 FY23

Q1 FY24

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

LADAKH-UT 01

J&K-UT 08

CH-UT 01

PB 27

RJ 23

HP 10

HY 28

MP 19

UK 08

DL 38

UP 56

CG 11

UT(PY) 05

MH 146

GOA 08

KA 222

KL 48

TG 58

AP 96

TN 145

GJ 90

UT 2

Note : Map not to scale

AS- 09

ML-01

WB 36

TR 01

BR 14

JH 09

OR 19

GT NETWORK

• Market Leader In LTL Segment

•

Hub & Spoke Model

Focus on Geographical Expansion.

21 Branches Added in Q1FY24 Service extended into newer territories

Operations:

• 24 States & 5 Union Territories

•

1140 Branches

49 Strategically Placed Hubs

GT VEHICLES & CAPACITY

No of GT Vehicles Capacity (tons)

33837

Total GT Vehicles : 5628 GT vehicles carrying Capacity: 81885 tons - -excluding Cranes(14) and Tankers(21)

7531

9212

14880

14071

626

1233

1030

859

1904

646

504

1121

<5 tons

5 - 10 tons

10 - 15 tons

15 - 20 tons

20 - 25 tons

25 - 30 tons

>30 tons

1.51%

9.20%

11.25%

41.32%

18.17%

17.18%

1.37%

Percent of total capacity

VRL has 981 vehicles > 15 years has of JUNE 30, 2023 with a total capacity of 9990 tons, whereas VRL has been continuously adding New Capacity.

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

KEY DEVELOPMENTS

Addition of 21 new branches in Q1FY24. Closed : 7 branches. Total number of branches as on 30.06.2023 is 1140.

Expansion of existing TPT / Branch Area and increasing Branch Density in Key Markets like Hubballi, Pune, Ahmedabad, Raipur, Salem, Chennai, Kanpur, Delhi, Kolkata, Patna, Guwahati, Siliguri, Cuttack, Ludhiana, Madurai etc.

Number of GT Vehicles decreased from 5671 vehicles in Q4FY23 to 5628 vehicles in Q1FY24. Total New GT vehicles added in Q1FY24- 254 vehicles (HCV- 235, LCV- 11, SV -8 ), sold/scrapped : 297 vehicles- (HCV-238,LCV -54,SV-4, TANKER-1) Overall vehicle numbers decreased by 43 vehicles.

Higher consumption at owned fuel pumps – Direct procurement from refineries. Planning to add two more owned pumps in Delhi and Ambala to the existing Six pumps.

89% of the GT vehicles are debt free

Bar code/ QR mechanism implemented for handling of consignments . Operations back on Track after Initial interruptions.

Net debt increased from Rs. 16794.12 lakhs as on Mar 31, 2023 to Rs. 19377.40 lakhs as on 30.06.2023.

CAPEX of Rs. 8712.49 lakhs was incurred in Q1FY24.

Sale/ Transfer of Transport of Passenger’s by Air business for a consideration of 17 crores- Effective date of transfer 31.07.2023.

Focus solely on core competency- Goods Transportation Business.

Focus on increasing Geographic presence hitherto untapped markets

to Volume Growth. Priority Increase in Freight Rates as & when required

Well positioned to conclude planned fleet addition

For further discussions or queries, Please contact

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

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