VRLLOGNSE12 June 2021

VRL Logistics Limited has informed the Exchange about Investor Presentation

VRL Logistics Limited

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VRL LOGISTICS LTD

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EARNINGS PRESENTATION

VRL Financial Results - FY 2020-21

June 12, 2021

• 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 is 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 in light of its operating experience of recent years. Many factors could cause the actual results, performance or achievement of the Company 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.

Company Overview

Key Differentiators

Vehicle Scrappage Policy

Financial Performance updates

Business Segment Overview

Key Points

Shareholding Pattern

Company Strategy

Branches and Distribution Network

Operational Capabilities

Promoters & Management

Awards & Recognition

Transporting Beyond Boundaries

Listed on Exchanges

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 ensuring efficient consignment distribution

hub-and-spoke

operating model

Depository:

Dedicated in-house maintenance facilities, inventory of spare parts and from own fuel stations

In-house software technology capabilities

Diversified customer base and revenue sources

Track record of growth and robust position

financial

Ability to recruit and retain experienced and qualified Staff

 We are LTL logistics service provider in the B2B space and its service

dynamics are way different from that handed by typical B2C ecommerce operators, Express cargo players or LTL consignment by Railways, etc

 Lower operating costs and higher margins in GT business which

contributes ~90% of Total Revenue

 Operating with owned fleet - specially in house designed - and customised

for our operations

 Higher Payload compared to Hired vehicles leading to higher

earnings per km

 Usage of Hired vehicles only on need basis – No payment for vendor

margins

 55% of GT vehicles fully depreciated - no additional depreciation

costs

 93% of GT vehicles are debt free – no associated finance costs

 Scrappage Policy and its benefits to VRL

 Very low debt levels – insignificant finance costs

 Diversified customer base across sectors, - no dependency on specific sector or customers - Top 10 clients contribute ~3% of total GT revenue.

 Lowest Trade Receivables in the industry

 Highest Cash Profit margins & Cash EPS in the industry

 Moving towards new age Electric Vehicles

 Usage of environment friendly Bio-Diesel - lower pressure on margins

in the current scenario of rising fuel prices.

 Our Bulk procurement policy driven by economies of scale

The vehicle scrappage policy is a government-initiated program to replace old vehicles from Indian roads. According to the new policy, commercial vehicles >15 years and passenger vehicles of >20 years will have to be mandatorily scrapped if they do not pass the fitness and emission tests from April 01, 2022

October 1, 2021: Rules for fitness scrapping centres will be released

• Competitors outsourced transport charges will increase substantially (due to lesser availability of vehicles) — which will be difficult to pass on, as most companies that outsource vehicles operate on thin margin.

April 1, 2022: Fitness testing for government and public-sector undertaking (PSU) vehicles

• VRL will be benefited from a rise in Freight Charges and this will straightaway add to PAT.

April 1, 2023: Fitness testing for heavy commercial vehicles

June 1, 2024: Fitness test rules to be rolled out for other categories

• Outsourcing vehicles gradually become unsustainable.

• The company will not book loss as vehicles older than 9 years are fully depreciated.

• Post scrappage, the useful spares an be used for the existing vehicles

•Realisation of salvage value would be an additional income to VRL

As on Mar 31,2021, VRL has 841 vehicles, with total capacity of 8407 Tons which are more than 15 years. This hardly constitutes around12% of our total capacity.

Financial Performance Update - Q4 & FY 2020-21

1) The Statement of Audited Financial Results ("Financial Results") for the quarter and year ended 31 March 2021, are prepared and published in accordance with Regulation 33 of the SEBI (Listing Obligations & Disclosure Requirements) Regulations, 2015, as amended. These financial results have been reviewed by the Audit Committee and approved by the Board of Directors at their respective meetings held on 12 June 2021. These financial results are prepared in accordance with the Indian Accounting Standards (Ind AS) as prescribed under Section 133 of the Companies Act, 2013, ("the Act") read with the relevant Rules thereunder and other accounting principles generally accepted in India.

2) The figures for the quarters ended March 31 as reported in these Financial Results are the balancing figures between audited figures in respect of

the full financial years ended March 31 and the published year to date figures up to the end of the third quarter of the relevant financial year.

3) The Segment Information for the year ended 31 March 2021, forms an integral part of the Financial Results. 4) The Board of Directors had approved a proposal to buy back a maximum of 20 lakh equity shares of the Company having a face value of Rs.10 each at a price not exceeding Rs.300 per share aggregating to Rs.6000 lakhs, from the open market through Stock Exchange mechanism in accordance with the provisions of the Act and the Securities and Exchange Board of India (Buy-Back of Securities) Regulations, 2018. Accordingly, the Company has, based on the above approval, bought back 20 lakh equity shares at an average rate of Rs.253.36 per equity share, resulting in total cash outflow of Rs.5187.46 lakhs (including transaction costs and buyback related expenses of Rs.120.21 lakhs). The Company has utilised an amount of Rs.4987.46 lakhs from the Securities Premium in accordance with the requirements of section 52 of the Act. The tax outgo on account of the buy-back amounts to Rs.1133.87 lakhs which has been adjusted from Securities Premium. The shares so bought back were fully extinguished by 24 March 2021.

5) The Company‘s operations were impacted during the first quarter of the financial year 2020-21, following the nationwide lockdown imposed by the Government of India during the first wave of COVID-19 pandemic. The Company has since resumed operations, taking all due care for the health and safety of its employees. The Company has thereafter evaluated the impact of this pandemic on its business operations, financial position and, based on its review of current indicators, there is no significant impact on the Company‘s assets, capital and financial resources and liquidity position for the year ended 31 March 2021. The profitability for the year was impacted during the first quarter of the financial year due to sub optimal operations on account of the lockdown. However, the assessment of impact of COVID-19 pendemic is a continuous process, given the uncertainties associated with its nature and duration. The financial implications are contingent on the various business parameters which may emerge from time to time and the Company will continue to closely monitor any material changes from those estimated as on the date of adoption of these Financial Results.

6) The Audited Statement of Cash Flows has been prepared under the indirect method as set out in Ind AS 7 - Statement of Cash Flows. 7) Previous period figures have been regrouped / restated wherever considered necessary to conform to the current period classification. 8) The Board of Directors has recommended a final dividend on equity shares of Rs.4 per equity share (face value of Rs 10/-each) for the year

ended 31 March 2021.

Revenue at 60302.13 lakhs

Revenue at 177578.73 lakhs

EBITDA Margins at 16.34%

EBITDA Margins at 14.66%

EBIT Margins at 10.03%

PBT Margins at 8.51%

PAT Margins at 6.16%

EBIT Margins at 5.66%

PBT Margins at 3.59%

PAT Margins at 2.54%

Consolidated (INR in Lakhs)

Q4 FY21 (Audited)

(refer note 2)

Q3 FY21 (Unaudited)

Q4 FY20 (Audited)

(refer note 2)

FY21 (Audited)

FY20 (Audited)

REVENUE

EBITDA

EBITDA MARGINS(%)

EBIT

EBIT MARGINS(%)

PBT

PBT MARGINS(%)

PAT (exclusive of other comprehensive income)

PAT MARGINS(%)

60302.13

56855.46

50026.32

177578.73

212885.65

9850.82

10392.47

5906.93

26035.04

30858.48

16.34%

6046.85

10.03%

5131.16

8.51%

18.28%

6285.65

11.06%

5453.47

9.59%

11.81%

14.66%

14.50%

1378.21

10056.02

14105.05

2.75%

327.47

0.65%

5.66%

6.63%

6374.07

10431.68

3.59%

4.90%

3716.44

3973.77

213.90

4506.79

9011.49

6.16%

6.99%

0.43%

2.54%

4.23%

FY21 Revenue (in Lakhs)

Business Segment Breakup

Segment

Goods transport

Bus Operations

Wind Power

Transport of Passengers by Air

Others

TOTAL

159275.00

13033.56

1757.44

1182.37

2330.36

177578.73

Goods Transport 90%

Bus Operations 7%

Wind power 1%

Transport of Passenger by Air 1%

Goods Transport

Bus Operations

Geographical Spread 875 Locations

Geographical Spread 6 States, 35 Branches & 17 agencies

Fleet Size 4575 Trucks

Fleet Size 291 Buses

Operating Model Asset owned, Hub and Spoke model

Fleet Capacity 68107 Tons

Technology: GPS Tracking, SMS Alerts, Consignment Tracking, Schedule alerts, Predictive analysis

Operating Model Tier1 and Tier 2 cities

Passengers travelled 1294698 passengers (FY21)

Technology: GPS Tracking, SMS Alerts, Anti Collison devices, Sleep Alerts for drivers, Online Booking

Note: Percentage to Total Revenue

Others 1%

Wind Power

Site Location Karnataka State

Number of Turbines 32 W T Gs

Installed Capacity 40 MW

Technology O & M by Suzlon

Transport of Passengers by Air

Permit Non-Scheduled Operator

Number of Aircrafts: 2

Seating Capacity 6 Passengers each

Make Hawker Beechcraft

Contributed ~90% of business in FY21

Less than Truckload (LTL), Full Truckload (FTL) & Courier services

Strong B2B focus across a broad range of industries and a diversified customer base.

Hub & Spoke Model with Pan- India geographical presence

Differentiated services offering

Wide range of customized Vehicles

Advanced technology systems

Leadership in the LTL Surface Logistics space.

1 3

Goods Transport Business breakup

Less than truckload 89%

Full truck load 10%

Courier & others 1%

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.

Asset Owned Business Model • Total of 4575 vehicles as on 31st March 2021, with a carrying capacity of 68107 tons. • 43 owned properties, including branches, offices and transhipment hubs.

B2B Focus - Diversified sectors and customers • The primary focus is on B2B customers with the top ten customers contributing only 3% of total Goods transport business revenue.

Note: Percentage to Total Goods Transport Business

4575 vehicles

4261 (93.14%) debt free vehicles

2527 (55.23%) vehicles fully depreciated and operating in Optimal working condition

Automotive parts

(INR in lakhs)

Goods Transport

Quarter ended

Year ended

31.03.2021

(Audited)

(refer note 2)

31.12.2020 (Unaudited)

31.03.2020

(Audited)

(refer note 2)

31.03.2021 (Audited)

31.03.2020 (Audited)

53577.39

50100.82

41650.59

159275.00

172392.91

9697.03

9754.42

4777.65

24417.02

22929.72

18.10%

19.47%

11.47%

15.33%

13.30%

6957.41

6546.39

1403.64

12501.77

11039.64

12.99%

13.07%

3.37%

7.85%

6.40%

Particulars

Revenue

EBITDA

EBITDA Margin(%)

EBIT

EBIT Margin(%)

Total Revenue Rs 53577.39 lakhs

EBITDA Rs 9697.03 lakhs

EBITDA Margin 18.10%

28.64% YoY

102.9% YoY

6.6% YoY

Delivered a Phenomenal Quarterly EBITDA of Rs.9697.03 lakhs in Q4FY21, more than twice as compared with Q4FY20, with margins of 18.1%

19% Revenue growth

103678

79% EBITDA growth

19451

86901

10841

H2FY20 GT Revenue (Lakhs)

H2FY21

H2FY20

H2FY21

GT EBITDA (Lakhs)

With the pandemic slowing down in the

second half of the fiscal year, The operations

not only stabilized, but also witnessed a 19%

growth in revenue, and a 79% growth in

EBITDA, in comparision to the second half of

the previous year.

Goods transport Revenue (INR Lakhs) & Growth (%)

5.0%

6.4%

142458

151532

11.2%

168525

2.3%

172393

(7.6%)

159275

FY 17

FY 18

FY 19

FY 20

FY 21

GT REV

Growth(%)

Goods transport EBITDA (INR Lakhs) & EBITDA margin (%)

12.4%

12.3%

17636

18645

12.2%

20521

13.3%

22930

15.33%

24417

GT EBITDA

FY 17

Margin(%)

FY 18

FY 19

FY 20

FY 21

Contributes ~7%* of business

Lower contribution owing to the pandemic

Total Fleet Size 291 buses

291 buses Debt free & Zero debt Segment

Booking of tickets is facilitated by a wide network of agents, leading web based travel agents and online booking facility on website & mobile

High hygienic standards maintained in line with GOI directives.

Services in the state of Karnataka Andhra Pradesh, Telengana, Goa, Gujarat, Maharashtra

In-Cabin CCTV for passenger and luggage safety

SMS alerts and dedicated 24/7 customer care facility

Innovative safety measures including usage of Anti collision and Anti sleep devices to aid drivers

(INR in lakhs)

Bus Operations

Quarter ended

Year ended

31.03.2021

(Audited)

(refer note 2)

31.12.2020 (Unaudited)

31.03.2020

(Audited)

(refer note 2)

31.03.2021 (Audited)

31.03.2020 (Audited)

5614.43

5211.53

7058.24

13033.56

34371.06

(443.20)

472.88

649.68

(703.15)

4863.98

(7.89%)

9.07%

9.20%

(5.39%)

14.15%

(924.33)

167.79

79.74

(2446.23)

2331.57

(16.46%)

3.22%

1.13%

(18.77%)

6.78%

Particulars

Revenue

EBITDA

EBITDA Margin(%)

EBIT

EBIT Margin(%)

Revenue from Operations (INR Lakhs) & Growth rate (%)

4.68%

180309

6.61%

192232

9.74%

210954

0.4%

211854

(17)%

176292

FY17

FY18

FY19

FY20

FY21

EBITDA (INR Lakhs) & EBITDA margin (%)

12.6%

22748

12.8%

24846

11.9%

25192

14.50%

30859

14.66%

26035

FY17

FY18

FY19

FY20

FY21

Revenue from Operations

Growth (%)

Ebitda

Ebitda Margin

Net Debt to Equity

Gearing Ratio

17396

6278

12880

17706

10144

0.3

0.1

0.2

0.3

0.2

24.32%

9.57%

16.62%

22.30%

14.52%

FY17

FY18

FY19

FY20

FY21

FY17

FY18

FY19

FY20

FY21

Net debt/Equity(x)

Net debt position (Lakhs)

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.

Return metrics

Leverage metrics

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

21.7

23.2

9.5

8.4

7.1

0.8

0.3

0.5

0.6

0.4

FY 17

FY 18

FY 19

FY 20

FY 21

Net debt/Ebitda(x)

Ebitda/finance cost(x)

13%

16%

15%

14%

15%

16%

14%

11%

FY 17

FY 18

FY 19

FY 20

FY 21

Receivables

Debt

• Trade receivables at 13 days of total revenue

Net debt reduced from Rs17705.83 lakhs as on

in FY21

Mar 31, 2020 to Rs 10144.31 lakhs as on Mar 31, 2021

• High-quality and diversified customer base

• Efficient collection process

• Conservative credit policy

•Rotation of working capital

Trade Receiavable days

• The ICRA Debt Rating is maintained A+ (stable).

Net debt/Equity(x)

17396

6278

12880

17706

10144

0.32

0.11

0.2

0.28

0.17

FY17

FY18

FY19

FY20

FY21

FY16

FY17

FY18

FY19

FY20

FY21

Net debt/Equity(x)

Net debt position (Lakhs)

Net Cash generated from operations (Lakhs)

19798

20548

19219

25728

27111

FY17

FY18

FY19

FY20

FY21

 Cash Flow increases 5.4 % YoY from 25728 lakhs to 27111 lakhs

CASH EPS Net Cash generated from operations / Number of shares

21.70

22.74

21.27

28.48

30.69

FY17

FY18

FY19

FY20

FY21

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

Note: Net cash generated from Operations as per Cash Flow Statement

Year

Total Number of Vehicles

Total Turnover

INR in Lakhs

Year

Total Number of Vehicles

Total Turnover

INR in Lakhs

1983-84

1984-85

1985-86

1986-87

1987-88

1988-89

1989-90

1990-91

1991-92

1992-93

1993-94

1994-95

1995-96

1996-97

1997-98

1998-99

1999-00

2000-01

2001-02

117

147

215

248

292

398

525

596

621

792

945

1022

1121

140

199

290

405

709

1063

1375

1763

2386

3105

4189

5078

6459

9337

12073

14652

2002-03

2003-04

2004-05

2005-06

2006-07

2007-08

2008-09

2009-10

2010-11

2011-12

2012-13

2013-14

2014-15

2015-16

2016-17

2017-18

2018-19

2019-20

2020-21

Note: Total Number of Vehicles inclusive of staff buses

1202

1255

1683

1891

2426

2697

2668

2730

2978

3528

3590

3874

4084

4316

4429

4473

4851

5158

4936

16826

20419

27739

35695

44295

54695

65066

71625

89292

113528

133532

150378

167283

172252

181238

193655

211747

212886

177579

 Procurement of Bio-fuel @ 23.3% of total quantity in FY21 (31.03% in Q1FY21, 53.18% in Q2FY21, 17.34% in Q3FY21, 4.91% in Q4FY21).

 Increase in Tonnage by 5.99% QoQ, and 15.34% YoY

Sixteen new branches added in Q4FY21.

Increase in Goods Transport Kms of owned vehicles by 7.2% QoQ and 16.6% YoY.

 Inspite of Increase in Fuel costs by 21.53% QoQ, and 44.08% YoY, Goods Transport segment was able to maintain healthy EBITDA margins of 18.10% in Q4FY21.

 The Company scrapped old and high maintainance vehicles (Trucks and Buses), which also had an impact on decreased repair and maintainance costs.

 The ICRA Debt Rating is maintained A+ (stable).

 Six electric Vehicles(all SV‘s) added during Q4FY21.

Enabled All India Permit for Buses from 01.04.2021

 FY21 PAT turns positive driven by Q3FY21 & Q4FY21 performance, thereby indicating successful strategies while responding to unique challenges posed by the pandemic.

implementation of business

 The Company completed Buyback of 20,00,000 Equity Shares at a volume weighted average price of Rs.253.36 per Equity Share from the shareholders (excluding promoters, promoter group and persons in control of the Company), via the ―open market" route through the stock exchange mechanism with the applicable laws.

The Board of Directors has recommended a final dividend on equity shares of Rs.4 per equity share (face value of Rs 10/-each) for the year ended 31 March 2021.

 Net debt reduced from Rs17705.83 lakhs as on Mar 31, 2020 to Rs 10144.31 lakhs as on Mar 31, 2021

0.02%

1.22%

3.05%

7.46%

Shareholding Pattern

Promoter

Mutual Funds

18.66%

Foreign Portfolio Investors

69.59%

General Public

NBFC (RBI Registered)

Others

Sl No

Investor

VRL Logistics Limited has informed the Exchange about Investor Presentation

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