Vrl Logistics Ltd. · NSE:VRLLOG
Vrl Logistics — FY2023-24 Earnings Presentation
43 slides from Vrl Logistics's earnings presentation, May 20, 2024
Slide 1: Submission of Earnings Presentation to stock exchanges
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 India Limited Phiroze Jeejeebhoy Towers Exchange Plaza, Plot No.C/1, G-Block, Dalal Street Ba
Slide 2: FY2023-24 Earnings Presentation
FY2023-24 Earnings Presentation
Slide 3: Disclaimer
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 di
Slide 4: Significance of Roadways in Indian Logistics landscape
Significance of Roadways in Indian Logistics landscape India has about 66.71 lakh km 4 Integrating Rural Economies 1 Backbone of Transportation of road network, which is the Roadways serve as the primary mode of Robust road infrastructure second-largest in the world transportation, connecting ru
Slide 5: Present Logistics Scenario
PRESENT LOGISTICS SCENARIO Challenges Compliance issues, Regional brokers, Pricing, Low efficiency & Transparency. Often market is dependent on middle men adding to increased costs Ownership Truck owners with less than five trucks Solutions dominate the logistics industry making it one • Shift minds
Slide 6: Vision 2030 - Logistics Sector
VISION 2030- LOGISTICS SECTOR India aims to be one of the top 20 countries in the World Bank A Logistics Performance Index by 2030. Currently it stands at 38 The reimagined supply chain will B make India “Atmanirbhar” and strongly complement “Make in It will be powered by next-gen India” and “
Slide 7: Rising Indian Economy
RISING INDIAN ECONOMY INDIAN ECONOMY REGULATORY ENVIRONMENTS AND POLICIES The Indian economy is likely to grow at 11 GST Implementation 22 FDI Liberalization 6.5% in the financial year starting April The introduction of the Goods and The Indian government's efforts to 1, 2024, and at a similar pac
Slide 8: And VRL is all set to encash on India's growth story
5994 Owned Vehicles And VRL is all set to encash on 1209 Branches India’s growth story by …. 50 Transshipment Hubs ……maintaining its position as the leading service provider in the LTL segment by scaling up its 9 Lakhs + Customer base infrastructure to deliver unmatched service levels committed to Q
Slide 9: YoY Addition
YOY ADDITION 8 +323 +83 +290 +3747 +364’000 VEHICLES BRANCHES CAPEX VEHICLE FREIGHT VOLUME (No’s) (No’s) (Rupees in crores) CAPACITY (in Tons) (in Tons) 6% YoY 7% YoY (30%) YoY 9% YoY 5% YoY 0.5% QoQ 2% QoQ 168% QoQ 4% QoQ (1%) QoQ 6% QYoY 7% QYoY (51%) QYoY 10% QYoY 5% QYoY 8
Slide 10: VRL - LTL Market Leader
VRL- LTL MARKET LEADER v 9
Slide 11: B2B Focus
B2B FOCUS Pan-India Focus on high Hub and B2B Focus - Revenue breakup (FY24) margin LTL Spoke model Diversified sectors business of and customers Less than distribution truckload 90.8% Full truck LTL involves Significant The primary load 8.0% transportation of flexibility to focus is on B2B co
Slide 12: VRL - Key Differentiators
VRL - KEY DIFFERENTIATORS 11 VRL Operating model 5966 GT VEHICLES Distribution Network Only “Owned Asset” organised Integrated hub-and-spoke Efficient operations with Robust pan India network player in Less than Truckload operating model ensuring largest fleet which across 24 states, 5 union logisti
Slide 13: VRL - Key Differentiators
VRL - KEY DIFFERENTIATORS Fuel Lowest cost Most efficient Wide Lower Net Procurement Operator collection range of Debt Level mechanism Customers Procurement of Own workshop Not dependent Provisions for Bad debt Net Debt @ INR diesel directly on any single (FY24) ~ Rs.196 lakhs 262 Crs from
Slide 14: VRL - At a Glance
VRL – AT A GLANCE With an extensive network At VRL Logistics, we pride In addition to our core To support our world-class logistics around the Country, VRL ourselves on delivering an transportation and services, VRL has invested heavily in Logistics is able to provide exceptional customer wa
Slide 15: Financials
FINANCIALS v
Slide 16: Financials
FINANCIALS QUARTERLY TOTAL INCOME FY24 TOTAL INCOME 77221 290972 266287 73908 218037 159275 70288 Q4FY23 Q3FY24 Q4FY24 FY21 FY22 FY23 FY24 QUARTERLY EBITDA and MARGINS(%) FY 24 EBITDA and MARGINS(%) 11879 39136 41600 41454 10915 9675 26641 14.13% 17.95% Note: 1. All numbers in 15.62% 14.25% lakhs an
Slide 17: Financials
FINANCIALS Q4 Q4 YoY Q3 QoQ 12m 12m YoY Particulars (INR in Lakhs) FY24 FY23 Growth (%) FY24 Growth (%) FY24 FY23 Growth (%) Total Income 77221 70288 10% 73908 4% 290972 266287 9% Total Expenses 74310 64266 16% 72040 3% 278921 246035 13% Profit Before Exceptional Item and Tax 2911 6022 (52%) 1868 56
Slide 18: Financials
FINANCIALS Rupees in Q4 Q4 YoY Q3 QoQ 12m 12m YoY Lakhs FY24 FY23 Growth (%) FY24 Growth (%) FY24 FY23 Growth (%) Total Income 77221 70288 10% 73908 4% 290972 266287 9% EBITDA 10915 11879 (8%) 9675 13% 41454 41600 (0.4%) Margin (%) 14% 17% 13% 14% 16% EBIT 5087 7351 (31%) 4000 27% 19838 25686 (23%)
Slide 19: Financial Performance
FINANCIAL PERFORMANCE Revenue Analysis • GT revenue increases by 10% Q4YoY, up by 4.5% QoQ , up by 9% YoY • Volumes up by 9.61% Q4YoY from 1031 thousand tons to 1130 thousand tons, up by 3.51% QoQ from 1092 thousand tons to 1130 thousand tons, & up by 9.30% YoY from 3912 thousand tons to 4276 thousa
Slide 20: Profitability Analysis
PROFITABILITY ANALYSIS Q4-24 Q4-23 Difference Q4 YOY (%) Reasons (% to Revenue) EBITDA 14.13% 16.90% (2.77%) • DIESEL consumption qty increased by 4.8% due to addition of new vehicles and kms run by them. • Average procuring cost per litre of Diesel down by 1.17%, from Rs 88.78 in Q4-23 to Rs 87.73
Slide 21: Profitability Analysis
PROFITABILITY ANALYSIS Q4-24 Q3-24 Difference QOQ (%) Reasons (% to Revenue) EBITDA 14.13% 13.09% 1.04% • DIESEL consumption qty increased by 1.2% • Average procuring cost per litre of Diesel down by 1.24% from Rs 88.83 in Q3-24 to Rs. 87.73 in Q4-24. Fuel cost 29.22% 30.46% (1.23%) Procurement from
Slide 22: Profitability Analysis
PROFITABILITY ANALYSIS FY24 FY23 Difference YOY (%) Reasons (% to Revenue) EBITDA 14.25% 15.62% (1.38%) • DIESEL consumption qty increased by 4.8% Fuel cost 30.14% 30.43% (0.28%) • Average procuring cost per litre of Diesel down by 2.47%, from Rs 90.22 in FY-23 to Rs 87.99 in FY24 • Procurement from
Slide 23: Tonnage and Realisation
TONNAGE AND REALISATION 1092 1130 GT Tonnage (in '000 tons) 1048 1009 1031 1002 905 967 877 887 847 616 Q1 FY22 Q2 FY22 Q3 FY22 Q4 FY22 Q1 FY23 Q2 FY23 Q3 FY23 Q4 FY23 Q1 FY24 Q2 FY24 Q3FY24 Q4FY24 11600+ TONS SERVICED ON A DAILY BASIS (FY2024) 6755 6691 6724 6679 6683 6649 6654 6650 6656 6669 6589
Slide 24: Consistent Growth in Tonnage & Realisation
CONSISTENT GROWTH IN TONNAGE & REALISATION 6584 6669 6676 6268 6047 5698 5825 5429 5179 4972 4689 4180 4276 3912 3696 3416 3227 2959 2659 2787 2596 2619 2624 2541 2323 2363 2406 2094 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 2023-24 REALI
Slide 25: Net Cash Generated from Operating Profit Before Working Capital Changes
NET CASH GENERATED FROM OPERATING PROFIT BEFORE WORKING CAPITAL CHANGES Operating Profit before working capital changes(Lakhs) 41320 46195 40939 30981 25652 FY20 FY21 FY22 FY23 FY24 CASH EPS : Operating Profit before working capital changes/ Number of shares 52.29 46.77 46.80 34.29 29.04 FY20 FY21 F
Slide 26: Leverage Metrics
LEVERAGE METRICS Net Debt to Equity Gearing Ratio 17706 10144 12990 16794 26206 22.30% 21.70% 14.52% 16.63% 14.70% 0.3 0.2 0.2 0.2 0.3 FY20 FY21 FY22 FY23 FY24 FY20 FY21 FY22 FY23 FY24 Net debt/Equity(x) Net debt position (Lakhs) Note : Debt for the above purpose includes non-current borrowings, cur
Slide 27: Receivables
RECEIVABLES Trade receivables at High-quality and Conservative credit Efficient Collection 11 days of total diversified customer policy Mechanism revenue in FY24 base 9 10 11 12 13 14 15 16 FY18 15 Trade Receivables FY19 14 From FY20 14 15 days in FY18 FY21 13 to FY22 11 13 days in FY21 FY23 11 to F
Slide 28: Key Developments - FY24
KEY DEVELOPMENTS – FY24 Addition of 97 new branches in FY24. Closed -14 branches. Branches added in Q1FY24- 21 new branches, Q2FY24-28 new branches, Q3FY24-25 new branches & Q4FY24-23 new branches. Total number of branches as on 31.03.2024 is 1209 Expansion of existing Branch Area/TPT Area like Hubb
Slide 29: Fleet
FLEET v
Slide 30: Owned Fleet
OWNED FLEET 1 W e take pride in our extensive fleet of modern, well-maintained vehicles that are optimized for efficiency and reliability. O ur diverse fleet includes a wide range of 2 trucks, trailers, and specialized equipment to handle any freight requirements. Our vehicles are regularly serviced
Slide 31: Fleet & Capacity
FLEET & CAPACITY Total GT Vehicles : 216 1.63% 1.68% 8.52% 5957 --excluding 166 Percent to capacity Cranes(14) and 17.34% 116 < 5tons Tankers(23) 99 13.01% GT vehicles carrying 5-10 tons Capacity: 86405 tons 10-15 tons 10 15-20 tons 15.23% 2019-20 2020-21 2021-22 2022-23 2023-24 20-25 tons Trailers
Slide 32: 5994 Company owned vehicles
891 new vehicles added in FY 24 & 128 new Vehicles added in Q4FY24 Currently operating with 216 5994 Company owned vehicles Trailers. To be gradually increased Total Goods Transportation Fleet Capacity at 86405 tons 5087 (85%) debt free vehicles 1519 (25%) vehicles fully depreciated and op
Slide 33: Network
NETWORK v
Slide 34: Network
NETWORK J&K-UT LADAKH-UT 02 24 States & 5 Union Territories 09 HP CH-UT 01 PB 32 11 UK 1209 Branches 09 DL HY 32 40 UP 50 Strategically placed Hubs RJ 60 27 AS- 10 BR 16 ML-01 GJ MP 19 JH 11 WB TR Market Leader In LTL Segment 44 01 98 CG 11 OR UT (DM & SL) 3 MH 151 21 Hub & Spoke Model TG
Slide 35: Hub & Spoke Operating Model
HUB & SPOKE OPERATING MODEL COLLECTION CONSOLIDATION DISTRIBUTION OWNED HUBS TOTAL HUB CAPACITY (Owned + Leased) MUMBAI BHIWANDI MANGALURU HUBBALLI VARUR OWNED HUBS (Sq Feet) 1462122 VIJAYAPURA SURAT DAVANAGERE LEASED HUBS (Sq Feet) 4396872 TOTAL Sq Feet 5858994 34
Slide 36: Wide Range of Sectors Served
WIDE RANGE OF SECTORS SERVED Expertise In Handling Variety of Commodities Pharma Food Goods Products Clothes No single customer Plastics & contributing more than Electrical & Textiles Electronics ~1% of Total Revenue Diversified B2B Customer Goods Base across Wide Range Sports Stationery Goods Goods
Slide 37: State of the Art Technology
STATE OF THE ART TECHNOLOGY Operations Monitoring System : IT Advance Consignment E-way bill, E-invoice GST ERP system: In- systems in place to monitor vehicle Management system : Compliance - Complete house movement, fuel consumption per Advanced consignment automation of the compliance developed E
Slide 38: Operational Capabilities
OPERATIONAL CAPABILITIES Fuel procurement strategies to reduce overall expense Dedicated in-house maintenance & vehicle body design facilities Procurement of fuel directly from refineries and Preventive in-house maintenance program petroleum companies designed to increase the life of vehicles
Slide 39: Sustainability Initiatives
SUSTAINIBILITY INITIATIVES Environmentally Friendly Fleet 1 VRL Logistics is committed to reducing its carbon footprint through the use of a modern, 2 Waste Reduction and Recycling CNG fuel-efficient fleet. Presently we operate with 40 EV’s. Our electrical forklifts at TPT’s are VRL Logistics has im
Slide 40: Promoters
Promoters Dr. Vijay Sankeshwar Dr. Anand Sankeshwar Chairman and Managing Director Managing Director Honored With The Padma Shri Award (the Fourth Highest Civilian Honorary Doctorate by Karnataka Award) On The Eve Of Republic Day, 2020 For Contribution To State Open University Trade & Industry Honor
Slide 41: Focus on core competency and geographic presence
Focus solely on core competency- Goods Transportation Business Focus on increasing Geographic presence of in hitherto untapped markets Priority to Volume Growth with existing realisation. Increase in Freight Rates as & when required Planned fleet addition in line with growth in Tonnage 40
Slide 42: Shareholding Pattern as on Mar 31, 2024
Shareholding Pattern as on Mar 31, 2024 TOP TWENTY SHAREHOLDERS (PAN BASED) SL No NAME % to EQUITY CATEGORY 1 HDFC MF 6.60% MUT 2 BANDHAN MF 4.55% MUT 3 SBI MF 4.06% MUT 3.27% 4 HSBC MF 3.57% MUT 9.93% 5 ICICI PRUDENTIAL TRANSPORTATION LOGISTICS FUND 1.93% MUT 6 CANARA ROBECO MF 1.65% MUT 7 NIPPON L
Slide 43: For further discussions or queries, please contact
For further discussions or queries, Please contact Sunil Nalavadi Chief Financial Officer +91 93425 59298 cfo@vrllogistics.com 42