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: FY2022-23 Earnings Presentation
FY2022-23 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 Truck load provider with an established brand operating model ensuring logistics business in India having one of the largest efficient consignment
Slide 5: India's Largest LTL Service Provider
INDIA’S LARGEST LTL SERVICE PROVIDER 20000+ 8 LAKH + WORKFORCE led by experienced CUSTOMER BASE 49 MASSIVE management TRANSHIPMENT 1126 GOODS HUBS HIRED VEHICLES TRANSPORT ENGAGED ON BRANCHES 5671 OWNED NEED BASIS GOODS 95% DEBT FREE VEHICLES TRANSPORT VEHICLES 412 CRORES . 54 lakhs+ Sq ft DURING CA
Slide 6: VRL - Key Differentiators
VRL - KEY DIFFRENTIATORS India – 73% 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 5671 GT vehicles Efficie
Slide 7: VRL - Key Differentiators
VRL - KEY DIFFRENTIATORS More than 36% vehicles Fully Lower Costs Depreciated More than 95% vehicles Debt Free No Associated finance costs Financial performance & position Track record of growth and robust financial position EBITDA Margins @17% (Q4FY23) – Highest in the industry Cash Pr
Slide 8: Standalone Strengths
Standalone Strengths Most efficient collection mechanism • Annual bad debt ~ Rs.30 lakhs on ~ Rs.2,600 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 dependen
Slide 9: Key Points
KEY POINTS GOODS TRANSPORT REVENUE ( Rupees in lakhs) GOODS TRANSPORT EBITDA (Rupees in lakhs) 266287 41600 218037 39136 FY22 FY23 FY22 FY23 TONNAGE DELIVERED BRANCHES (No’s) CAPACITY (TONS) CAPEX ( Rs in Lakhs) (TONS) 41220 1126 82657 3911956 21% YOY 18% YOY 16% YOY 111% YOY 19550 3226655 956 71056
Slide 10: Financials
FINANCIALS Q4 Q3 QoQ YoY (INR in Lakhs) FY23 FY22 Growth (%) FY23 Growth (%) FY23 FY22 Growth (%) Total Income 70287.99 60054.62 17% 68601.60 2% 266286.66 218037.10 22% Total Expenses 64265.66 53158.31 21% 63543.15 1% 246034.95 197567.05 25% Profit Before Tax from Continuing 6022.33 6896.31 (13%) 50
Slide 11: Continued Operations - Goods Transport (GT)
CONTINUED OPERATIONS - GOODS TRANSPORT (GT) Rupees in Q4 YoY Q3 QoQ YoY Lakhs FY23 FY22 Growth (%) FY23 Growth (%) FY23 FY22 Growth (%) Revenue 70287.99 60054.62 17.04% 68601.60 2.46% 266286.66 218037.10 22.13% EBITDA 11878.60 12156.32 (2.28%) 10776.20 10.23% 41599.84 39136.20 6.30% Margin (%) 16.90
Slide 12: Continued Operations - Goods Transport (GT)
CONTINUED OPERATIONS - GOODS TRANSPORT (GT) Details of Unallocable segment Revenue/Expenses in earlier quarters are now a part of continued operations Q4 Q3 Rupees in Lakhs FY23 FY22 FY23 FY23 FY22 Unallocable Revenue 795.40 630.05 641.61 2429.16 2617.57 Other Income 469.15 662.18 448.54 1434.48 1,6
Slide 13: GT Performance
GT PERFORMANCE Revenue Analysis • GT revenue increased by 22% 12MYOY, 17% QYoY and 2% QoQ due to : Strategic Planning Contribution from new branches Addition of new customers A Strong Revival in Economy which helped in a growing demand from MSME and Corporates. • Volumes up by 21% YoY from 3226655 t
Slide 14: GT – Profitability Analysis
GT – PROFITABILITY ANALYSIS FY23 FY22 Difference FY (%) Reasons (% to Revenue) EBITDA 15.62% 17.95% (2.33%) Fuel cost 30.43% 29.67% 0.76% • Procurement from high cost retail fuel pumps increased from 57.09% in FY22 to 90.67% in FY23 as there was an increase in rates for bulk purchase of Diesel from
Slide 15: GT – Profitability Analysis
GT – PROFITABILITY ANALYSIS Q4 FY23 Q4 FY22 Difference YOY (%) Reasons (% to Revenue) EBITDA 16.90% 20.24% (3.34%) Fuel cost 30.95% 28.55% 2.40% • Increase in Fuel Procurement price by 3.21% Lorry Hire 7.88% 7.26% 0.62% • Increase in Lorry Hire Kms due to geographical expansion and increase in tonna
Slide 16: GT – Profitability Analysis
GT – PROFITABILITY ANALYSIS Q4 FY23 Q3 FY23 Difference QoQ (%) Reasons (% to Revenue) EBITDA 16.90% 15.71% 1.19% • Increase in Consumption qty due to increase in Company Owned Vehicle Fuel cost 30.95% 29.71% 1.24% Kms • Compensated with Decrease in Procurement costs by 0.64% • Decrease in Lorry Hire
Slide 17: GT – Tonnage and Realisation
GT – TONNAGE AND REALISATION 1009 1031 GT Tonnage (in '000 tons) 905 967 877 887 847 616 Q1 FY22 Q2 FY22 Q3 FY22 Q4 FY22 Q1 FY23 Q2 FY23 Q3 FY23 Q4 FY23 11400+ TONS SERVICED ON A DAILY BASIS (Q4 FY2023) 6755 6691 6679 6683 6649 6655 6589 6205 Q1 FY22 Q2 FY22 Q3 FY22 Q4 FY22 Q1 FY23 Q2 FY23 Q3 FY23 Q
Slide 18: 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 19: Goods Transport Business – B2B Focus
Goods Transport Business – B2B Focus Focus on high margin LTL business Goods Transport Revenue breakup • 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 con
Slide 20: GT Network – Update Map
GT NETWORK – update map Presence in 25 States & 4 Union J&K 06 territories. HP 10 CH PB 01 28 1126 Goods Transportation Branches UK 08 DL HY 27 38 UP RJ 54 24 AS- 09 BR ML- 01 Connected with 49 Massive 14 MP JH 18 09 WB TR GJ 36 01 88 CG 09 OR Transshipment Hubs UT 19 3 MH 143 TG 184 New Bra
Slide 21: 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 3976635 LEASED HUBS (Sq Feet) MYSURU GANGAVATI TOTAL Sq Feet 5438757 BALLARY 20
Slide 22: GT Vehicles
GT VEHICLES 1338 vehicles added in FY 23. Net 5671 Company owned vehicles Vehicle increase (after scrappage) is 855 Vehicles Total Goods Transportation Vehicles Capacity at 82657 tons Handling 10700+ tons on a daily basis in FY23 Additional Usage of 1000+ Hired Vehicles Additional Order pl
Slide 23: GT Vehicles & Capacity
GT VEHICLES & CAPACITY Total GT Vehicles : 5671 No of GT Vehicles 34282 Capacity (tons) GT vehicles carrying Capacity (excluding Cranes and Tankers) : 82657 tons 14904 14904 7670 8785 1226 1063 815 1938 886 617 647 533 22 <5 tons 5 - 10 tons 10 - 15 tons 15 - 20 tons 20 - 25 tons 25 - 30 tons >30 to
Slide 24: Wide Range of Sectors Served
WIDE RANGE OF SECTORS SERVED Stationery Expertise In handling variety of Commodities Sports Goods Pesticides Electronics Educational Machinery Goods Diversified 800000+ Customer Base Across sectors Agriculture Products & Implements Textile No single customer contributing over ~1% of Total FMCG Reven
Slide 25: Key Developments
KEY DEVELOPMENTS Addition of 184 new branches in FY23. Q1FY23 – 68 new branches, , Q2FY23- 29 new branches, Q3FY23- 30 new branches, Q4FY23- 57 new branches . Closed : 14 branches. Total number of branches as on 31.03.2023 is 1126. Expansion of existing TPT / Branch Area and increasing Branch Densit
Slide 26: Key Developments
KEY DEVELOPMENTS Long Term ICRA Credit Rating improved to A+ (positive) from A+(stable) Management is focusing on high growth and high margin Goods transport segment as evident from exiting 1. Bus Operations 2.Wind Power segment The Company has, during the previous quarter, executed a Business Trans
Slide 27: Key Developments – Proposed Capex Plan
KEY DEVELOPMENTS – PROPOSED CAPEX PLAN Proposed capacity addition 1,667 customized trucks Period within which capacity is Fleet addition is expected to be made during FY2024. to be added lnvestment required The capex planned, at list price, would translate to a total outlay of Rs.697 crores approx.
Slide 28: Leverage Metrics
LEVERAGE METRICS Net Debt to Equity Gearing Ratio 12880 17706 10144 12990 16794 22.30% 16.62% 14.52% 16.63% 14.70% 0.2 0.3 0.2 0.2 0.2 FY19 FY20 FY21 FY22 FY23 FY19 FY20 FY21 FY22 FY23 Net debt/Equity(x) Net debt position (Lakhs) Note : Debt for the above purpose includes non-current borrowings, cur
Slide 29: Receivables
RECEIVABLES Trade receivables at High-quality and Conservative credit Efficient Collection 11 days of total diversified customer policy. Mechanism & revenue in FY23 base Efficient collection Rotation of working process capital 9 10 11 12 13 14 15 16 FY18 15 Trade Receivables FY19 14 From FY20 14 15
Slide 30: Net Cash Generated from Operations & Cash EPS
NET CASH GENERATEDFROM OPERATIONS & CASH EPS( POST TAX) Net Cash generated from operating Activities (Lakhs) 37076 31834 27162 FY21 FY22 FY23 CASH EPS: Net Cash generated from operating activity / Number of shares 41.97 36.03 30.75 FY21 FY22 FY23 Healthy cash earnings per share indicates the company
Slide 31: 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 32: 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 private petroleum companies designed to increase the life of veh
Slide 33: Promoters
Promoters Dr. Vijay Sankeshwar Chairman and Managing Director Dr. Anand Sankeshwar Managing Director Honored With Padmashri Award ( Fourth Highest Civilian Award) in 2020 for contribution to Trade & Industry Honorary Doctorate by Karnataka State Open University Honored With Karnataka Rajyotsava Awar
Slide 34: Strategy
STRATEGY Continued focus on higher Focus on increasing Geographic margin GT Business presence of GT Business in hitherto untapped markets Priority to Volume Growth. Increase in Freight Rates as & when required Well positioned to conclude planned fleet addition 33
Slide 35: Shareholding Pattern as on Mar 31, 2023
Shareholding Pattern as on Mar 31, 2023 1.20% Shareholding Pattern Promoter 2.35% 8.04% Mutual Funds 24.24% Foreign Portfolio Investors 64.17% General Public Others 34
Slide 36: BSE Sensex v/s VRL Share Price
BSE SENSEX v/s VRL SHARE PRICE As on As on Closing Price Change in (%) 01.04.2022 31.03.2023 VRL 491.8 632.6 28.63% 150 High of 704.7 BSE SENSEX 59276.7 58991.5 (0.48%) on20/07/2022 140 130 120 110 100 90 80 VRLLOG BSE Sensex 35
Slide 37: 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 36