VRLLOG

Corporate Office : Giriraj Annexe Circuit House Road HUBBALLI - 580 029 Karnataka State Phone : 0836 2237511 Fax : 0836 2256612 e-mail : headoffice@vrllogistics.com To, BSE Limited National Stock Exchange of lndia Limited Phiroze Jeejeebhoy Towe6 Exchange Plaza, Plot No.C/l, G-Block, Dalal Street Bandra - Kurla Complex, Bandra (E), Mumbai- 400 001 Mumbai - 400 051 Scrip Codes : 539118 Scrip Codes : VRLLOG Dear 5ir / Madam, sub: Submission of Earnings Presentation With respect to above captioned subject and in accordance with the extant provislons of the SEBI (Listing Obligations and Disclosure Requirements) Regulations 2015 and other applicable laws for time beingln force, we enclose herewith the Earnings Presentation ofthe 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 fait \ For vRL LqGdrlcS LIMITED uqf,.. fll 1-Li. ANIRUDDHA PHADNAVIS COMPANY SECRETARY AND COMPLIANCE OFFICER Date:01.11.2021 Place: Hubballi Regd. & Admn. offlce : Bengaluru Road Varur HUBBALLT - 5A1 2O7 Karnataka state Phone :0836 2237613 Fax :0836 2237614 e-mail : varurho@vrllogistics'com Customer Care : HUBBALLI @ 0835 - 23O78OO e-mall : customercare@Yrllogistics.com Website : www.vrllogistics.com CIN : 160210KA1983P1C005247 GSTTN (KAR): 29AABCV36O9C1A VRL Financial Results - Q2 FY2021-22 Earnings Presentation November 01, 2021 1 • 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 therein. •The information contained in this presentation has not been independently verified and no representation or warranty expressed or implied is made as to 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 guarantee of future performance and involve risks and uncertainties 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 from any future results performance or achievement 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 and other statutes. • 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 content 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. 2 A public listed company on NSE & BSE Exchange with a Market capitalization of INR 33.76 billion(as on 30th September, 2021) Pre dominantly parcel delivery service provider (~90% of total Revenue for FY21) with pan–India last mile connectivity operating through a fleet of 4687 owned Goods transport vehicles complemented by third party hired vehicles on need basis Integrated hub-and-spoke operating model which enables proper aggregation of parcels from a diversified customer base across multiple industries and locations Diverse customer base of Corporate, SMEs and traders with focus on B2B services Passenger transportation through 280 owned buses of various makes Extensive pan India network with presence across 22 states & 4 union territories in 902 locations ensuring last mile delivery, even in remote locations State - of - the - art vehicle maintenance facilities with performance enhancing technological innovations Own fuel stations at key locations and tie up with IOCL Dedicated In-house software with own servers and real time data for analysis and MIS 3 Key Differentiators India – 73% Goods transported by road  Long Term Sustainability  VRL  Only “Owned Asset” organised player in LTL business in India Integrated hub-and-spoke operating model ensuring  Operating model  efficient consignment distribution Efficient operations with largest fleet and minimal outsourcing  VRL owns 4687 GT vehicles  of transportation  Distribution Network  Robust pan India network across 22 states, 4 union territories, having 902 branches, including 45 massive transhipment hub facilities  Vehicles Specially Designed by  Ensures Higher Payload OEM`s / in-house  Owned Vehicle operations and maintenance  Entry Barrier 4 Key Differentiators  More than 52% vehicles Fully Depreciated  Lower Costs  More than 91% vehicles Debt Free No Associated finance costs   Financial performance & position Track record of growth and robust financial position   EBITDA Margins @18.03% (Q2FY22) – Highest in the industry   Cash Profits/Cash EPS  High cash profit margins & Cash EPS  Minimal Outsourcing of transport  No Additional Margin to be Paid to Outside Vehicle Service Provider  Bulk procurement policy  Economies of scale  Addition of Electric vehicles  Moving toward new age vehicles 5  Most efficient collection mechanism Annual bad debt less than Rs.5 lakh on ~Rs.2,000 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 single customer or any single product. •  Own workshop, Own fittings, Own Body Building, Own Design Lowest cost Operator. •  Double digit business volume growth.  Much lower Debt Level – INR 154 Crs. Least cash burnout for servicing and repayment. •  Gradual margin growth in core GT segment, driven by freight volume.  PROACTIVELY preparing for Scrapping policy VRL has 1137 vehicles > 15 years, as of September 30, 2021 with a total capacity of 11088 tons, whereas • VRL added 10550 tons capacity from 2019 onwards. 6 Market Leader in LTL segment Operations : 22 States,4 Union Territories. 715 Branches 142 Agencies 45 Strategically placed Hubs Hub-and-Spoke model to aggregate small parcels and maximize capacity utilization of its vehicles Efficient operations with largest fleet and a robust pan India network in 902 locations 7 Own Vehicle Numbers 0.5 tons to Car Available Total 2.5 tons to 7.5 tons and Tanker Cranes TOTAL As of 2.5 tons Carrier Capacity Vehicles BUSES 7.5 tons above (2) (3) FLEET (a) (1) (tons) Owned 31-Mar-18 150 960 2765 102 52954 17 13 4007 396 4403 31-Mar-19 257 1009 3004 102 64776 13 13 4398 381 4779 31-Mar-20 312 981 3428 0 70012 20 13 4754 337 5091 31-Mar-21 311 942 3289 0 68107 20 13 4575 291 4866 30-Sep21 361 942 3349 0 69011 22 13 4687 280 4967 Note: (a) – this category consists of electric vehicles. (1) Used for transportation of automobiles, converted to HGV‟s from 2020. (2) Used for transportation of liquid (3) Cranes are predominantly used for internal operations. Capacity Breakup as on Sep 30, 2021 25618 No of Vehicles 15170 14741 Capacity (tons) 6133 5739 1178 610 896 517 1435 658 524 12 432 <5 tons 5 - 10 tons 10 - 15 tons 15 - 20 tons 20 - 25 tons 25 - 30 tons >30 tons % of total 1.71% 8.89% 8.32% 37.12% 21.98% 21.36% 0.62% capacity 8 Goods transportation fleet Significance of own vehicles 4687 owned vehicles as on  Enables us to significantly control September 30, 2021 operational costs 4253 (91%) debt free vehicles  Higher payload per vehicle for LTL consignments  Enables us to cover a large number of Wide range of vehicles 2460 (52%) of vehicles with carrying capacity routes and reduce dependence on third are fully depreciated from 1 ton to 36 tons party hired vehicles and operating in optimal condition  Enables better control and time bound delivery, thereby enhancing service quality Bus Operations fleet  Bus Operations: Owned vehicles enable 280 owned vehicles as on September 30, 2021 us to provide safe and on time travel experience 280 (100%) vehicles are debt free Total of 4967 owned vehicles provides greater advantage in terms of pricing and service 9 1) The above Statement of Unaudited Financial Results ("Financial Results") for the quarter and half year ended 30 September 2021 have been reviewed by the Audit Committee and approved by the Board of Directors at their respective meetings held on 1 November 2021. These Financial Results have been subjected to a limited review by the Statutory Auditors of the Company. These Financial Results are prepared and published in accordance with Regulation 33 of the SEBI (Listing Obligations & Disclosure Requirements) Regulations, 2015, as amended. 2) These Financial Results are prepared in accordance with the IndianAccounting Standard 34 'Interim Financial Reporting' (Ind AS) 34, as prescribed under Section 133 of the CompaniesAct, 2013, ("the Act") read with the relevant Rules issued thereunder and other accounting principles generally accepted in India. 3) The Unaudited Statement of Cash Flows has been prepared under the indirect method as set out in Ind AS 7 - Statement of Cash Flows. 4) The Unaudited Statement of Assets and Liabilities as at 30 September 2021, Unaudited Statement of Cash Flows for half year ended 30 September 2021 and Segment Information for the quarter and half year ended 30 September 2021, form an integral part of the financial results. 5) Previous period figures have been regrouped / restated wherever considered necessary to conform to the current period classification. 10 Consolidated Q2 FY22 Q1 FY22 Q2 FY21 H1 FY22 H1 FY21 FY21 (INR in Lakhs) (Unaudited) (Unaudited) (Unaudited) (Unaudited) (Unaudited) (Audited) TOTALINCOME 63813.76 41728.10 44180.76 105541.86 60421.14 177578.73 EBITDA 11506.06 3956.57 8946.91 15462.63 5791.75 26035.04 EBITDA Margins(%) 18.03% 9.48% 20.25% 14.65% 9.59% 14.66% EBIT 7549.49 188.28 5066.46 7737.77 (2276.48) 10056.03 EBIT Margins(%) 11.83% 0.45% 11.47% 7.33% (3.77%) 5.66% PBT 6568.45 (761.83) 4170.21 5806.62 (4210.56) 6374.07 PBT Margins(%) 10.29% (1.83%) 9.44% 5.50% (6.97%) 3.59% PAT (excludes comprehensive income) 4947.80 (604.18) 3088.07 4343.62 (3183.42) 4506.79 PAT Margins(%) 7.75% (1.45%) 6.99% 4.12% (5.27%) 2.54% 11 (INR in lakhs) Goods Transport Quarter ended Half Year ended Year ended 30.09.2021 30.06.2021 30.09.2020 30.09.2021 30.09.2020 31.03.2021 Particulars (Unaudited) (Unaudited) ( U n audited) (Unaudited) (Unaudited) (Audited) Revenue 56881.55 38482.59 40771.41 95364.14 55596.00 159275.00 EBITDA -After Ind As 116 10978.64 4306.25 8441.58 15284.89 5971.16 26643.13 EBITDA Margin(%) 19.30% 11.19% 20.70% 16.03% 10.74% 16.73% EBIT-After Ind AS 116 7928.89 1446.95 5584.67 9375.84 3.55 14727.88 EBIT Margin(%) 13.94% 3.76% 13.70% 9.83% 0.01% 9.25% (INR in lakhs) Bus Operations Quarter ended Half Year ended Year ended 30.09.2021 30.06.2021 30.09.2020 30.09.2021 30.09.2020 31.03.2021 Particulars (Unaudited) (Unaudited) ( U n audited) (Unaudited) (Unaudited) (Audited) Revenue 5026.65 1756.83 1678.17 6783.48 2207.6 13033.56 EBITDA -After Ind As 116 32.67 (383.24) (88.76) (350.57) (661.61) (575.48) EBITDA Margin(%) 0.65% (21.81%) (5.29%) (5.17%) (29.97%) (4.42%) EBIT-After Ind AS 116 (284.92) (710.82) (540.41) (995.74) (1618.47) (2318.56) EBIT Margin(%) (5.67%) (40.46%) (32.20%) (14.68%) (73.31%) (17.79%) 12 (INR in lakhs) Sale of Power Quarter ended Half Year ended Year ended 30.09.2021 30.06.2021 30.09.2020 30.09.2021 30.09.2020 31.03.2021 Particulars (Unaudited) (Unaudited) (Unaudited) (Unaudited) (Unaudited) (Audited) Revenue 857.92 554.27 755.87 1412.19 1235.04 1757.44 EBITDA -After Ind As 116 690.17 388.67 642.36 1078.83 960.22 1159.03 EBITDA Margin(%) 80.45% 70.12% 84.98% 76.39% 77.75% 65.95% EBIT-After Ind AS 116 419.25 119.12 372.81 538.37 421.12 80.83 EBIT Margin(%) 48.87% 21.49% 49.32% 38.12% 34.10% 4.60% (INR in lakhs) Transport of Passengers by Air Quarter ended Half Year ended Year ended 30.09.2021 30.06.2021 30.09.2020 30.09.2021 30.09.2020 31.03.2021 Particulars (Unaudited) (Unaudited) ( U naudited) (Unaudited) (Unaudited) (Audited) Revenue 371.28 350.33 377.23 721.61 484.8 1182.37 EBITDA -After Ind As 116 97.61 (41.00) 96.89 56.61 (4.69) (270.68) EBITDA Margin(%) 26.29% (11.70%) 25.68% 7.84% (0.97%) (22.89%) EBIT-After Ind AS 116 42.95 (95.50) 56.15 (52.55) (94.25) (453.20) EBIT Margin(%) 11.57% (27.26%) 14.88% (7.28%) (19.44%) (38.33%) 13 Pre-Covid levels 1st wave Recovery Recovery after 2nd wave 60302 d 54204 52692 55964 56855 63814 50026 e 44181 41728 t Revenue a d EBITDA 16240 i 7626 8206 11506 l 9119 5907 8947 10392 9851 o 3957 s -3155 n o Q1FY20 Q2FY20 Q3FY20 Q4FY20 Q1FY21 Q2FY21 Q3FY21 Q4FY21 Q1FY22 Q2FY22 C 50101 53577 56882 42339 43202 45264 41664 40771 t Revenue s r 38483 o d EBITDA o p 6854 6435 6633 14824 8442 10315 10357 10979 o s 5441 4306 n -2471 G a r Q1FY20 Q2FY20 Q3FY20 Q4FY20 Q1FY21 Q2FY21 Q3FY21 Q4FY21 Q1FY22 Q2FY22 T s n 10396 9466 o 7451 7058 i t 5614 a Revenue 5212 5027 r EBITDA e p 1734 1678 1757 O 2096 503 696 529 473 33 -89 -383 s -573 -443 u Q1FY20 Q2FY20 Q3FY20 Q4FY20 Q1FY21 Q2FY21 Q3FY21 Q4FY21 Q1FY22 Q2FY22 B Recovery from Pandemic – Set for Higher growth 14  Overall demand picked up in the second quarter and Business growth was back to pre-pandemic levels .  In spite of the difficulties faced, the impact on business was lesser than the first wave witnessed last year, as supply chains were well evolved enough to cope with localized and staggered lockdowns  Addition of 22 new branches in Q2FY22 and overall 31 new branches in H1FY22. Planning to expand network by opening new branches in untapped market. Number of GT Vehicles increased from 4575 in FY 21 to 4687 vehicles in H1FY2021-22. New vehicles added in Q1FY22- 54 vehicles, in Q2FY22- 138 vehicles, Total Vehicles added in H1 2021-22 is 192, Sold/scrapped – 80, Net vehicle addition is 112 vehicles.  Procurement of Bio-fuel @ 11.75% of total quantity in H1FY22, (Q1FY22- 13.49% of total quantity, Q2FY22– 10.55% of total quantity)  9 electric vehicles added during H1FY22. EnabledAll India Permit for Buses from 01.4.2021 The ICRA Debt rating is reaffirmed as A+(stable)  Net debt increased from Rs 10144.31 lakhs as on Mar 31, 2021 to Rs 15371.71 lakhs as on Sep 30, 2021. 15 Net Debt to Equity Gearing Ratio 6278 12880 17706 10144 15372 24.32% 22.30% 16.62% 14.52% 9.57% 0.1 0.2 0.3 0.2 0.3 FY17 FY18 FY19 FY20 FY21 FY18 FY19 FY20 FY21 Q2FY21 Net debt position (Lakhs) Net debt/Equity(x) Return metrics 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 (Profit for the year+Finance costs) on Average Leverage metrics capital employed Return(Profit for the year) on average equity 23.2 21.7 Net 9.5 8.4 7.1 debt/Ebitda(x) 13% 13% 15% 16% 14% 15% 16%14% 11% 7% 0.8 0.3 0.5 0.6 0.4 Ebitda/finance cost(x) FY 17 FY 18 FY 19 FY 20 FY 21 FY 17 FY 18 FY 19 FY 20 FY 21 16 For further discussions/queries please contact : Sunil Nalavadi Chief Financial Officer +91 93425 59298 cfo@vrllogistics.com