Slide 1: Earnings Presentation VRL Financial Results - FY 2016-17
Earnings Presentation VRL Financial Results - FY 2016-17 MAY 19, 2017 1
Slide 2: 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 materi
Slide 3: Agenda
Disclaimer Company Overview Company Profile Promoters & Key Milestones Business Segment Breakup Booking & Distribution Network Infrastructure In-house Capabilities Key Developments in FY17 Industry Awards & Recognition Management Team Earnings Overview Q4 & FY17 Earnings preview Q4 & F
Slide 4: Company Overview
COMPANY OV ERVI EW
Slide 5: Company Profile
A public listed company on NSE & BSE Exchange with a Market capitalization of INR 28.39 billion (as on 31st March, 2017). A pre dominantly parcel delivery service provider (68.28 % of total Revenue as of FY 17) with pan –India last mile connectivity through a fleet of 3941 owned Goods transport vehi
Slide 6: Promoters and Company Key Milestones
PROMOTERS COMPANY -KEY MILESTONES Dr. Vijay Sankeshwar Chairman and Managing Director 1976 • Dr. Vijay Sankeshwar started goods transportation business through a proprietary firm Actively involved in day-to-day management, has over four decades of 1983 • Incorporated as Vijayanand Roadlines Private
Slide 7: Business Segments
Business Segments 96.60% Transportation 18.0% 78.60% Passenger Transportation Goods Transportation Reputed brand name Main business vertical „Vijayanand travels 1.29% Wind Power generation 68.28% 8.04% 1.82% 0.03% 0.43% 1.33% 41.25 MW wind farm Less than truck Full truck load (FTL) Car Liquid Courie
Slide 8: Booking and Distribution Network
Hub-and-Spoke model to aggregate small parcels and maximize capacity utilization of its vehicles One of the largest Operational Strategically widespread pan-India infrastructure placed surface transportation compromises of 47(7 owned) network in 23 states 629 branches, transshipment and 4 union terr
Slide 9: Fleet of owned vehicles
Small Light Heavy Car Available Total Goods transportation fleet includes : Tanker Cranes TOTAL As of Vehicle Commercial Commercial Carrier Capacity (5) (6) Vehicles BUSES FLEET 3941 owned vehicles as of March 2017. (1) Vehicle ( 2) Vehicles (3) (4) (tons) Owned 1001 (25%) vehicles less than 5 years
Slide 10: In-house capabilities: vehicle body design and fuel procurement
• Technology to fabricate lighter and longer bodies thereby reducing overall weight of the vehicle and ensure higher payloads without violating permissible payload limits. Dedicated in-house goods vehicle body • Higher length chassis sourced from manufacturers on specifications provided by company r
Slide 11: Drivers
Recruiting Drivers as full time employees with all statutory benefits. Large pool of experienced and trained drivers. Driver performance is evaluated and incentives provided is based on measures of: – safety record – transit time – distance covered DRIVERS – fuel efficiency – tyre usage. Drivers are
Slide 12: Key Developments in FY17
GST Complaince - Migration from the old tax regime to the new GST tax regime successfully completed. After initial supply constraints, consumption of bio diesel picks up from Q4 17 as new suppliers are identified. (11.63% of total quantity in FY2017, 3.38% in Q1 2017, 19.89% in Q2 2017, 6.45% in Q
Slide 13: Industry Awards and Recognition
Best transporter -2016 award from Frost & Sullivan Excellence in operational efficiency award -2016 from Express supply chain logistics Apollo CV Magazine Award-2016 for „Best practice adopter of the Year‟. ET logistics award 2016 for the best „Road Transport company of the Year „. India Bus Award i
Slide 14: Track record of growth
YEAR NO OF VEHICLES TOTAL TURNOVER YEAR NO OF VEHICLES TOTAL TURNOVER INR in Mn INR in Mn 1983-84 8 3 2000-01 1022 1207 1984-85 11 4 2001-02 1121 1465 1985-86 15 7 2002-03 1202 1683 1986-87 24 14 2003-04 1255 2042 1987-88 45 20 2004-05 1683 2774 1988-89 81 29 2005-06 1891 3570 1989-90 117 41 2006-07
Slide 15: Senior management
Senior management Mr. V V Karamadi National Head (Operations) Mr. K N Umesh Has been associated with VRL since Oct 1995 Chief Operating Officer Overall control of day to day operations, Stratergy planning, Mr. Prabhu A Salageri Associated with VRL since Mar 1984 Vice President (Travels) Holds a post
Slide 16: Note: First Ind AS Financial statements
NOTE: First Ind AS Financial statements The numbers used in the subsequent slides in as much as they relate to FY 2016 and onwards are IndAS compliant. All ratios indicated herein are based on the figures as contained in the BS/PL statement prepared in accordance with IndAS 1
Slide 17: Q4 and FY17 Earnings Overview
Revenue at 44286.38 lakhs Revenue at 180308.51 lakhs EBITDA Margins at 9.86% EBITDA Margins at 12.55% EBIT Margins at 4.5% EBIT Margins at 7.13% PBT Margins at 3.35% PBT Margins at 5.81% PAT Margins at 1.88% PAT Margins at 3.89% Consolidated (INR in Q4 FY17 Q3 FY17 Q4 FY16 FY17 FY 16 Lakhs) (Unaudit
Slide 18: Goods Transport
(INR in lakhs) Goods Transport Quarter ended Year ended 31.03.2017 31.12.2016 31.03.2016 31.03.2017 31.03.2016 Particulars (unaudited) (unaudited) (unaudited) (Audited) (Audited) Revenue 35752.61 35420.12 33697.13 142615.26 135794.66 EBITDA 4210.87 4609.30 3859.86 17636.00 19691.79 11.78% 13.01% 11.
Slide 19: Bus Transport
(INR in lakhs) Bus Transport Quarter ended Year ended 31.03.2017 31.12.2016 31.03.2016 31.03.2017 31.03.2016 Particulars (unaudited) (unaudited) (unaudited) (Audited) (Audited) Revenue 7,591.21 8,617.02 7030.47 32620.63 31,760.97 EBITDA 221.52 1279.14 1329.55 3742.91 7388.58 2.92% 14.84% 18.91% 11.4
Slide 20: Sale of Power
(INR in lakhs) Sale of Power Quarter ended Year ended 31.03.2017 31.12.2016 31.03.2016 31.03.2017 31.03.2016 Particulars (unaudited) (unaudited) (unaudited) (Audited) (Audited) 238.61 325.80 211.30 2346.84 2,139.42 Revenue 90.24 182.62 43.34 1755.86 1594.43 EBITDA 37.82% 56.05% 20.51% 74.82% 74.53%
Slide 21: Transport of Passengers by Air
(INR in lakhs) Transport of Passengers by Air Quarter ended Year ended 31.03.2017 31.12.2016 31.03.2016 31.03.2017 31.03.2016 Particulars (unaudited) (unaudited) (unaudited) (Audited) (Audited) 391.16 503.81 322.52 1603.43 1,117.78 Revenue (32.82) 102.94 (10.16) 26.26 (106.13) EBITDA (8.39%) 20.43%
Slide 22: Total Revenue and EBITDA trends
Total Revenue (INR Lakhs) & Growth rate (%) 17.6% 12.6% 11.2% 2.97% 4.68% 172252 180309 167283 150378 133532 Total Revenue Growth (%) FY13 FY14 FY15 FY16 FY17 Continuous revenue growth EBITDA (INR Lakhs) & EBITDA margin (%) 15.4% 14.4% 16.7% 16.1% 12.6% 28045 27932 20505 21657 22748 Ebitda Ebitda ma
Slide 23: Better Revenue and EBITDA growth vis-a-vis industry
Goods transport Revenue (INR Lakhs) & Growth (%) Goods transport EBITDA (INR Lakhs) & EBITDA margin (%) 15.0% 14.2% 13.9% 5.2% 5..0% 14.5% 14.7% 16.2% 14.5% 12.4% 135795 142615 129075 20851 19692 113343 16627 17636 99233 14395 FY 13 FY 14 FY 15 FY 16 FY 17 FY 13 FY 14 FY 15 FY 16 FY 17 GT EBITDA Mar
Slide 24: FY17 revenue from goods transportation
FY17 total revenue from goods Diversified customer base across a wide transportation: INR 14.3 bn range of industries To -pay 12.6% customers Paid Customers 19.6% Ongoing 55.4% Accounts 12.4% Others Primarily SME distributors & traders form a significant majority of Paid & To-Pay customer group. Thi
Slide 25: Leverage and return metrics
Net Debt to Equity Gearing Ratio 42899 24501 17396 . 54.70% 32.28% 1.2 24.32% 0.5 0.3 FY 15 FY16 FY17 FY 15 FY16 FY17 Net debt/Equity(x) Net debt position (Lakhs) Return metrics Note : Debt for the above purpose includes non-current borrowings, current borrowings Return(Net Profit+finance costs )on
Slide 26: Shareholding Pattern and Price Comparison
240 Shareholding Pattern On a base 100 220 scale , VRLLOG (listing 0.10% 3.43% price)has given 31% more 200 returns as of Mar31,2017 when compared with BSE 180 0.11% Sensex 8.19% 152 160 140 10.35% 120 100 116 8.25% 80 Dec-15 Jan-16 Dec-16 Jan-17 Aug-15 Feb-16 Aug-16 Feb-17 Sep-15 Oct-15 Mar-16 Sep-
Slide 27: Top 20 Investors
Sl Investor Category % to No Equity 1 ICICI PRUDENTIAL EXPORTS AND OTHER SERVICES FUND MUT 2.90 2 GOLDMAN SACHS INDIA LIMITED FPI 2.37 3 FRANKLIN INDIA SMALLER COMPANIES FUND MUT 1.92 4 MORGAN STANLEY MAURITIUS COMPANY LIMITED FPI 1.82 5 IDFC STERLING EQUITY FUND MUT 1.72 6 ABU DHABI INVESTMENT AUTH
Slide 28: Company Strategy
COMPANY STRATEGY
Slide 29: Company strategy
To build a robust , efficient transportation network and maximize capacity utilisation Focus on higher margin parcel delivery services • Focus on existing Infrastructural facilities and build a robust, efficient and cost effective network. • To reduce dependency on hired vehicles. • Focus on increas
Slide 30: Thanking You
THANKING YOU For further discussions/queries Please contact : Sunil Nalavadi Chief Financial Officer +91 93425 59298 cfo@vrllogistics.com