VRL Logistics (VRLLOG) Q4 14/15 earnings summary

Executive summary

• FY2014-15 revenue rose 11.64% to Rs.1,678.86 crore; net profit increased 60.01% to Rs.91.22 crore, with stronger goods transport and bus operations.

• The IPO was oversubscribed more than 74 times; shares listed on BSE and NSE on 30 April 2015.

Financial highlights

• Total revenue was Rs.1,678.86 crore versus Rs.1,503.78 crore YoY; revenue from operations grew 11.88% to Rs.1,671.20 crore.

• EBITDA rose 29.48% to Rs.280.45 crore; profit before tax was Rs.137.90 crore, including Rs.3.72 crore exceptional profit on land sale.

• Excluding the land-sale gain, PBT was Rs.134.19 crore, up 91.34% YoY; net profit rose to Rs.91.22 crore from Rs.57.01 crore.

• Basic and diluted EPS increased to Rs.10.66 from Rs.7.19; cash profit grew 23.72% to Rs.184.82 crore.

Outlook and guidance

• Plans include expanding goods transport in eastern and northeastern India, commencing a Kathmandu branch, and adding fleet and owned infrastructure.

• Higher-capacity vehicles are planned to support volume growth and reduce outside-vehicle dependence and driver costs per kg; GST-related benefits remain contingent on implementation.

• Management expected the proposed Transport Bill to improve freight efficiency and private bus operators’ competitive position.