Vrl Logistics Ltd. · NSE:VRLLOG
Vrl Logistics — Q3 FY2023-24 Earnings Presentation
26 slides from Vrl Logistics's earnings presentation, Feb 5, 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: Q3 FY2023-24 Earnings presentation
Q3 FY2023-24 Earnings presentation 1
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: VRL – Market Leader in B2B Parcel Segment
VRL – MARKET LEADER IN B2B PARCEL SEGMENT Only “Owned Asset” organised Pan-India surface logistics services Integrated hub-and-spoke player in Less than Truckload provider with an established brand operating model ensuring logistics business in India having one of the largest efficient consignment d
Slide 5: Workforce, customer base, hubs and vehicles at a glance
21000+ WORKFORCE led by experienced 8 LAKH + management 49 CUSTOMER BASE MASSIVE TRANSHIPMENT 1188 HUBS HIRED VEHICLES BRANCHES ENGAGED ON NEED BASIS 5966 OWNED VEHICLES .
Slide 6: VRL - Key Differentiators
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 5966 GT vehicles Efficie
Slide 7: VRL - Key Differentiators
VRL - KEY DIFFRENTIATORS ~27% vehicles Fully Depreciated Lower Costs ~ 85% vehicles Debt Free No Associated finance costs Financial performance & position Track record of growth and robust financial position EBITDA Margins @14% (9MFY24) Cash Profits/Cash EPS High cash profit margins
Slide 8: VRL - Key Differentiators
VRL - KEY DIFFRENTIATORS Most efficient collection mechanism • Provisions for Bad debt(9MFY24) ~ Rs.158 lakhs on ~ Rs.2138 Cr. Revenue • Hardly any collectible more than 90 days. • Trade Receivables at 12 days of Total revenue in 9MFY24 Procurement of diesel directly from Refineries by establish
Slide 9: Key Metrics
KEY METRICS Q3YoY QoQ 9mYoY 73908 8% 73908 3% 213751 9% Total Income (Rs in Lakhs) 68602 71533 195999 1188 11% 1188 2% 1188 11% Branches 1070 1165 1070 1092 8% 1092 4% 3142 9% Tonnage Delivered (in‘000 MT) 1009 1048 2881 87477 10% 87477 3% 87477 10% Capacity Addition (tons) 79535 84726 79535 2484 77
Slide 10: Financials
FINANCIALS Q3 Q3 YoY Q2 QoQ 9m 9m YoY Particulars (INR in Lakhs) FY24 FY23 Growth (%) FY24 Growth (%) FY24 FY23 Growth (%) Total Income 73908 68602 8% 71533 3% 213751 195999 9% Total Expenses 72040 63543 13% 68822 5% 204611 181769 13% Profit Before Exceptional Item and Tax 1868 5058 (63%) 2711 (31%)
Slide 11: Financials
FINANCIALS Rupees in Q3 Q3 YoY Q2 QoQ 9m 9m YoY Lakhs FY24 FY23 Growth (%) FY24 Growth (%) FY24 FY23 Growth (%) Total Income 73908 68602 8% 71533 3% 213751 195999 9% EBITDA 9675 10776 (10%) 9783 (1%) 30539 29721 3% Margin (%) 13% 16% 14% 14% 15% EBIT 4000 6566 (39%) 4563 (12%) 14751 18335 (20%) Marg
Slide 12: Financial Performance
FINANCIAL PERFORMANCE Revenue Analysis • GT revenue increases by 7.74% Q3YoY, up by 3.32% QoQ , up by 9.06% 9mYoY • Volumes up by 8.18% Q3YoY from 1009 thousand tons to 1092 thousand tons, up by 4.17% QoQ from 1048 thousand tons to 1092 thousand tons, & up by 9.06% 9mYoY from 2881 thousand tons to 3
Slide 13: Profitability Analysis
PROFITABILITY ANALYSIS Q3-24 Q3-23 Difference Q3 YOY (%) Reasons (% to Revenue) EBITDA 13.09% 15.71% (2.62%) • GT DIESEL consumption qty increased by 9.8% due to addition of new vehicles and kms run by them. • Average procuring cost per litre of Diesel down by 0.6%, from Rs 89.34 in Q3-23 to Rs 88.8
Slide 14: Profitability Analysis
PROFITABILITY ANALYSIS Q3-24 Q2-24 Difference QOQ (%) Reasons (% to Revenue) EBITDA 13.09% 13.68% (0.59%) • GT DIESEL consumption qty decreased by 0.3% • Average procuring cost per litre of Diesel up by 1.17%, from Rs 87.81 in Q2-24 to Rs 88.83 in Q3-24. Fuel cost 30.46% 31.17% (0.72%) Procurement f
Slide 15: Profitability Analysis
PROFITABILITY ANALYSIS 9m-24 9m-23 Difference 9M-YOY (%) Reasons (% to Revenue) EBITDA 14.29% 15.16% (0.88%) • GT DIESEL consumption qty increased by 11.8%. • Average procuring cost per litre of Diesel down by 2.9%, from Rs 90.67 in 9m-23 to Rs 88.08 in 9m-24. Fuel cost 30.47% 30.24% 0.24% Procureme
Slide 16: Tonnage and Realisation
TONNAGE AND REALISATION GT Tonnage (in '000 tons) 1092 1009 1031 1048 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 11000+ TONS SERVICED ON A DAILY BASIS (9MFY2024) 6755 6691 6679 6683 6649 6654 6650 6681 6669 6589 6205 Q1 FY22 Q2
Slide 17: Consistent Growth in Tonnage & Realisation
CONSISTENT GROWTH IN TONNAGE & REALISATION 6584 6669 6268 6047 5698 5825 5429 5179 4972 4689 4180 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 GT TONNAGE ('000 TONS)
Slide 18: B2B Focus
B2B FOCUS Focus on high margin LTL business Revenue breakup (9M FY24) • LTL involves transportation of consignments belonging to multiple customers in single vehicle • Our wider reach and adequate infrastructure helps in aggregating Less than less than truckload consignments from various clients and
Slide 19: Vehicles
VEHICLES 1338 vehicles added in FY 23 & 5966 Company owned vehicles 763 Vehicles added in 9MFY24 Total Goods Transportation Fleet Capacity at 87477 tons Handling 11000+ tons on a daily basis in 9MFY24 Additional Usage of Hired Vehicles on need basis 1 Ton to 36 Tons Carrying Capacity 18
Slide 20: Fleet & Capacity
FLEET & CAPACITY 36582 Total GT Vehicles : 5929 --excluding No of GT Vehicles Cranes(14) and Tankers(23) Capacity (tons) GT vehicles carrying Capacity: 87477 tons 14987 15151 10406 7241 1396 1001 987 2021 1711 665 652 549 45 <5 tons 5 - 10 tons 10 - 15 tons 15 - 20 tons 20 - 25 tons 25 - 30 tons >30
Slide 21: Network
NETWORK LADAKH-UT J&K-UT 09 02 • Market Leader In LTL Segment HP CH-UT 01 PB 11 • Hub & Spoke Model 31 UK 09 DL HY 32 39 • Focus on Geographical Expansion. UP RJ 59 27 BR 16 AS- 09 ML-01 • 74 Branches Added in 9mFY24 GJ MP 19 JH 11 WB 42 TR 01 • Service extended into newer territories 92 CG UT (DM &
Slide 22: Wide Range of Sectors Served
WIDE RANGE OF SECTORS SERVED Expertise In Handling Variety Of Commodities Sports Goods Educational Goods Machinery Diversified B2B Customer Base across Wide Range Agriculture of Industries FMCG Products & Textile Implements No single customer contributing more than ~1% Electrical Pharma Leather of T
Slide 23: Key Developments – 9MFY24
KEY DEVELOPMENTS – 9MFY24 Addition of 74 new branches in 9MFY24. Closed -12 branches. Branches added in Q1FY24- 21, Q2FY24-28, Q3FY24-25. Total number of branches as on 31.12.2023 is 1188 Expansion of existing Branch Area/TPT Area like Hubballi, Pune, Trichy, Salem, Indore, Chennai, Varanasi, Kanpur
Slide 24: Leverage Metrics
LEVERAGE METRICS Net Debt to Equity Gearing Ratio 17706 10144 12990 16794 27099 22.30% 16.62% 14.52% 16.63% 14.70% 0.3 0.2 0.2 0.2 0.3 FY20 FY21 FY22 FY23 9MFY24 FY19 FY20 FY21 FY22 FY23 Net debt/Equity(x) Net debt position (Lakhs) Note : Debt for the above purpose includes non-current borrowings, c
Slide 25: Focus on core competency and geographic expansion
Focus solely on core competency- Focus on increasing Geographic Goods Transportation Business presence of in hitherto untapped markets Priority to Volume Growth with existing realisation. Increase in Freight Rates as & when required Planned fleet addition inline with growth in Tonnage 24
Slide 26: 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 25