VRLLOGNSE6 November 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: 6.11.2023 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

Q2 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

20800+ WORKFORCE led by experienced management

8 LAKH + CUSTOMER BASE

49 MASSIVE TRANSHIPMENT HUBS

1165 BRANCHES

HIRED VEHICLES ENGAGED ON NEED BASIS

5782 OWNED VEHICLES

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 5782 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 1165 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

VRL - KEY DIFFRENTIATORS

 ~29% vehicles Fully Depreciated

~ 85% 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

@15% (H1FY24) – 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

VRL - KEY DIFFRENTIATORS

 Most efficient collection mechanism

• Provisions for Bad debt(H1FY24) ~ Rs.135 lakhs on ~ Rs.1398 Cr. Revenue. • Hardly any collectible more than 90 days.

•

Trade Receivables at 11 days of Total revenue in H1FY24

 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.

 Lower Debt Level – INR 280 Crs.

•

Least cash burnout for servicing and repayment.

KEY METRICS

Q2YoY

71533

65667

1165

1045

1048

967

84726

75084

11172

8385

11%

13%

33%

QoQ

71533

68310

1165

1140

1048

1002

84726

81885

11172

8713

28%

H1YoY

139843

10%

127397

1165

1045

2050

1872

84726

75084

19885

16925

11%

10%

13%

17%

Total Income (Rs in Lakhs)

Branches

Tonnage Delivered (in‘000s)

Capacity Addition (tons)

Capex ( Rs in lakhs)

FINANCIALS

Particulars

(INR in Lakhs)

Q2 YoY

QoQ

H1 YoY

FY24

FY23

Growth (%)

FY24

Growth (%)

FY24

FY23

Growth (%)

Total Income

Total Expenses

71533

65667

68310

68822

61377

12%

63749

139843

127397

132571

118226

10%

12%

Profit Before Tax from Continuing Operations

2711

4290

(37%)

4561

(41%)

7272

9171

(21%)

Profit for the Period from Continuing Operations

1992

3070

(35%)

3395

(41%)

5387

6737

(20%)

Profit Before Tax from Discontinued Operations

Tax Expense of discontinued operations

105

Profit for the Period from Discontinued Operations

(21)

1831

486

(21)

1345

Profit for the Period

1971

3146

(37%)

3395

(42%)

5366

8082

(34%)

FINANCIALS

Q2 YoY

QoQ

H1 YoY

FY24

71533

FY23

65667

FY23

68310

Growth (%)

FY24

139843

Rupees in

Lakhs

Total Income

EBITDA

Margin (%)

EBIT

Margin (%)

PBT

Growth (%)

(20%)

(37%)

9783

14%

4563

2711

9523

15%

5684

4290

Margin (%)

PAT

1992

3070

(35%)

3395

(41%)

Margin (%)

Growth (%)

10%

FY23

127397

18945

15%

11081

(12%)

20864

15%

16%

6188

4561

(41%)

(26%)

10751

11769

(9%)

7272

5387

9171

6737

(21%)

(20%)

FINANCIAL PERFORMANCE Revenue Analysis

•

GT revenue increases by 8.38% Q2YoY, up by 5.21% QoQ , & up by 9.04% H1YoY

Volumes up by 8.4% Q2YoY from 967 thousand tons to 1048 thousand tons , up by 4.57% QoQ from 1002 thousand tons to 1048 thousand tons, & up by 9.53% H1YoY from 1872 thousand tons to 2050 thousand tons

Tonnage Contribution by new branches

Q2 YOY

QOQ

H1 YOY

Branches Added (Net)

120

Contribution to Total Tonnage

4.45%

0.35%

3.99%

Delay in onset of festive season in the current fiscal by a month has resulted in lower demand of Cloth and Textile consignments in Q2FY24. The same is expected to benefit in Q3FY24

Realisation per ton maintained constant @ 6681(Q2FY24) from 6683 (Q2FY23)

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

PROFITABILITY ANALYSIS

Q2 YOY

Q2-24

Q2-23

(% to Revenue)

Difference

(%)

EBITDA

13.68% 14.50%

(0.82%)

Reasons

Fuel cost

Lorry Hire

31.17%

30.20%

0.98%

6.96%

10.06%

(3.10%)

Vehicle Running, Repairs & Maintenance

6.71%

Tyres, Flaps and Re-treading

2.37%

6.63%

2.30%

Bridge & Toll expenses

8.22%

7.25%

Rent

Hamali (Loading & Unloading charges)

Employee Cost

Other Expenses

Depreciation

EBIT

Finance Costs

PBT

PAT

2.06%

6.64%

1.82%

6.33%

16.55%

15.78%

5.63%

7.30%

6.38%

5.14%

5.85%

8.66%

2.59%

2.12%

0.47%

3.79%

2.79%

6.53%

4.68%

(2.74%)

(1.89%)

0.09%

0.08%

0.97%

0.24%

0.31%

0.77%

0.50%

1.45%

(2.28%)

• •

•

GT DIESEL consumption qty increased by 13.36%. Increase in own vehicle Kms in overall Kms Average procuring cost per litre of Diesel down by 2.05%, from Rs 89.65 in Q2-23 to Rs 87.81 in Q2-24. Procurement from refineries as a percent of total quantity increase by 28.71% from 1.70% in Q2-23 to 30.41% in Q2-24 Purchase of diesel from refineries interrupted in Sept-23 due to increase in bulk supply prices.

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

Percentage is maintained despite increase in Kms, as Kms covered by new vehicle increases

Increase in number of Toll Plazas from 1182 to 1285 across India, increase in Toll Rates and Increase in Kms by Owned vehicles.

Addition of new branches. Expansion in existing branches/TPT area

Increase in Loading and Unloading rates per ton

Annual increments from Sep-23,`Increase in number of employees due to addition of new branches & Internal promotions on selective basis

Increase in printing and stationery charges on account of printing stickers/labels on consignments.

Due to increase in capex & increase in ROU on account of addition/expansion of new leased branches/TPT’s area.

Due to increase in depreciation costs.

Due to increase in debt & increase in Lease Liabilities on account of Addition/Expansion of new leased branches/ TPT areas

Due to increase in depreciation & finance costs

PROFITABILITY ANALYSIS

QOQ

EBITDA

Q2-24

Q1-24

(% to Revenue)

Difference (%)

13.68%

16.22%

(2.54%)

Reasons

Fuel cost

Lorry Hire

Vehicle Running, Repairs & Maintenance

Tyres, Flaps and Re-treading

Bridge & Toll expenses

Rent

Hamali (Loading & Unloading charges)

Employee Cost

Other Expenses

Depreciation

EBIT

Finance Costs

PBT

PAT

31.17%

29.76%

1.42%

6.96%

6.71%

2.37%

8.22%

2.06%

6.64%

8.41%

5.68%

1.87%

7.76%

1.97%

6.59%

16.55%

16.28%

5.63%

7.30%

6.38%

2.59%

3.79%

2.79%

5.46%

7.16%

9.06%

2.38%

6.68%

4.97%

(1.45%)

1.03%

0.51%

0.46%

0.09%

0.05%

0.27%

0.17%

0.14%

(2.68%)

0.21%

(2.89%)

(2.18%)

• •

•

GT DIESEL consumption qty increased by 9.82% Average procuring cost per litre of Diesel up by 0.3% from Rs 87.54 in Q1-24 to Rs 87.81 in Q2-24. Procurement from refineries as a percent of total quantity decrease by 1.32% from 31.73% in Q1-24 to 30.41% in Q2-24 Purchase of diesel from refineries interrupted in Sept-23 due to increase in bulk supply prices.

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

Due to increase in Kms & periodic maintenance of own Vehicles

Increase in Kms covered by own Vehicles in overall Km

Increase in number of Toll Plazas from 1268 to 1285 across India, increase in Toll Rates and Increase in Kms by Owned vehicles.

Addition of new branches. Expansion in existing branches/TPT

Percentage maintained.

Annual increments from Sep-23,`Increase in number of employees due to addition of new branches & Internal promotions on selective basis

Percentage maintained.

Due to increase in capex and increase in ROU on account of addition/expansion of new leased branches/TPT’s area.

Due to increase in depreciation costs.

Due to increase in debt & increase in Lease Liabilities on account of Addition/Expansion of new branches/ TPT areas on lease basis.

Due to increase in depreciation & finance costs

PROFITABILITY ANALYSIS

H1-YOY

H1-24

H1-23 Difference (%)

(% to Revenue)

Reasons

EBITDA

14.92%

14.87%

0.05%

Fuel cost

Lorry Hire

Vehicle Running, Repairs & Maintenance

Tyres, Flaps and Re-treading

30.48%

30.52%

(0.04%)

7.67%

6.21%

2.13%

9.66%

6.36%

2.24%

(1.99%)

(0.16%)

(0.11%)

Bridge & Toll expenses

8.00%

7.08%

0.91%

Rent

Hamali (Loading & Unloading charges)

Employee Cost

Other Expenses

Depreciation

EBIT

Finance Costs

PBT

PAT

2.02%

6.62%

1.81%

6.29%

0.21%

0.33%

16.42%

15.86%

0.56%

5.55%

5.30%

7.23%

5.63%

0.25%

1.60%

7.69%

9.24%

(1.55%)

2.49%

2.04%

0.45%

5.20%

3.85%

7.20%

5.29%

(2.00%)

(1.44%)

• •

•

GT DIESEL consumption qty increased by 12.94%. Average procuring cost per litre of Diesel down by 4%, from Rs 91.38 in H1-23 to Rs 87.68 in H1-24. Procurement from refineries as a percent of total quantity increase by 29.8% from 1.24% in H1-23 to 31.04% in H1-24 Purchase of diesel from refineries interrupted in Sept-23 due to increase in bulk supply prices.

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

Increase in Kms covered by new Vehicles in overall Kms

Due to increase in Kms covered by new Vehicles

Increase in number of Toll Plazas from 1182 in H123 to 1285 tolls in H124, , increase in Toll Rates and Increase in Kms by Owned vehicles.

Addition of new branches. Expansion in existing branches/TPT area.

Increase in Loading and Unloading rates per ton

Annual increments from Sep-23,`Increase in number of employees due to addition of new branches & Internal promotions on selective basis

Increase in printing and stationery charges on account of printing stickers/labels on consignments.

Due to increase in capex and increase in ROU on account of addition/expansion of new leased branches/TPT’s area.

Due to increase in depreciation costs.

Due to increase in debt & increase in Lease Liabilities on account of Addition/Expansion of new branches/ TPT areas on lease basis

Due to increase in depreciation & finance costs

TONNAGE AND REALISATION

GT Tonnage (in '000 tons)

847

877

887

905

967

1009

1031

1002

1048

616

Q1 FY22

Q2 FY22

Q3 FY22

Q4 FY22

Q1 FY23

Q2 FY23

Q3 FY23

Q4 FY23

Q1 FY24

Q2 FY24

11000+ TONS SERVICED ON A DAILY BASIS (H1FY2024)

6679

6755

6589

6691

6683

6649

6654

6650

6681

6205

Q1 FY22

Q2 FY22

Q3 FY22

Q4 FY22

Q1 FY23

Q2 FY23

Q3 FY23

Q4 FY23

Q1 FY24

Q2 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

Revenue breakup (H1 FY24)

Less than truckload 89.6%

Full truck load 8.1%

Courier & others 2.3%

* % to Total Revenue

B2B FOCUS

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 across diversified sectors. The top ten customers contribute not more than 3% of total revenue.

VEHICLES

5782 Company owned vehicles

 1338 vehicles added in FY 23 & 525 Vehicles added in H1FY24.

 Total

Goods

Transportation

Vehicles Capacity at 84726 tons

 Handling 11000+ tons on a daily

basis in H1FY24

 Additional Usage of 1000+ Hired

Vehicles

1 Ton to 36 Tons Carrying Capacity

VEHICLES & CAPACITY

No of GT Vehicles Capacity (tons)

34597

Total GT Vehicles : 5782 GT vehicles carrying Capacity: 84726 tons - -excluding Cranes(14) and Tankers(23)

10212

6907

14987

14832

653

1363

966

968

1922

652

536

1828

<5 tons

5 - 10 tons

10 - 15 tons

15 - 20 tons

20 - 25 tons

25 - 30 tons

>30 tons

1.61%

8.15%

12.05%

40.83%

17.69%

17.51%

2.16%

Percent of total capacity

NETWORK

LADAKH-UT 02

J&K-UT 09

CH-UT 01

PB 28

HP 11

HY 29

UK 09

RJ 24

GJ 91

MP 19

UT (DM & SL) 3

MH 145

TG 58

AP 96

TN 147

GOA 08

KA 226

KL 49

Note : Map not to scale

DL 38

UP 58

CG 11

UT(PY) 05

AS- 09

ML-01

WB 41

TR 01

BR 16

JH 10

OR 20

• Market Leader In LTL Segment

•

Hub & Spoke Model

Focus on Geographical Expansion.

49 Branches Added in H1FY24 Service extended into newer territories

Operations:

• 24 States & 5 Union Territories

•

1165 Branches

49 Strategically Placed Hubs

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 49 new branches in H1FY24. Closed : 10 branches. Branches added in Q1FY24- 21, Q2FY24-28. Total number of branches as on 30.09.2023 is 1165.

Expansion of existing TPT / Branch Area and increasing Branch Density in Key Markets like Hubballi, Pune, Kanpur, Delhi, Patna, Guwahati, Siliguri, Madurai etc.

Number of GT Vehicles increased from 5671 vehicles in FY23 to 5782 vehicles in H1FY24. Vehicles added in Q1FY24 -254, Q2FY24-271. Total New GT vehicles added in H1FY24- 525 vehicles (HCV- 475, LCV- 34, SV -14, Tanker-2 ), sold/scrapped : 414 vehicles- (EV-3, HCV-324, LCV-79, SV-7, TANKER-1) Overall vehicle numbers increased by 111 vehicles.

Higher consumption at owned fuel pumps – Direct procurement from refineries.

85% 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 lakhs as on Mar 31, 2023 to Rs. 28046 lakhs as on 30.09.2023.

CAPEX of Rs. 11172 lakhs was incurred in Q2FY24. Total Capex incurred in H1FY24 increased by 17% from Rs 16925 lakhs in H1FY23 to Rs 19885 lakhs in H1FY24

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

Net Debt to Equity

LEVERAGE METRICS

Gearing Ratio

17706

10144

12990

16794

28046

0.3

FY20

0.2

FY21

0.2

FY22

0.2

FY23

0.3

H1FY24

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.

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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