VRL Logistics (VRLLOG) Q4 16/17 earnings summary

Executive summary

• FY17 revenue rose 4.69% to ₹181,238.33 lakh, while net profit fell to ₹7,047.26 lakh from ₹10,424.09 lakh amid higher diesel costs and passenger-bus competition.

• Goods transport growth and higher air-charter revenue were offset by pressure on bus operations, lower biofuel use and flat freight volumes.

Financial highlights

• Total income was ₹181,238.33 lakh versus ₹173,120.09 lakh; revenue from operations was ₹180,308.51 lakh versus ₹172,252.18 lakh.

• EBITDA, reported as profit before finance charges and depreciation, was ₹22,748.13 lakh versus ₹27,932.10 lakh; PBT was ₹10,530.07 lakh versus ₹15,799.77 lakh.

• Net profit was ₹7,047.26 lakh versus ₹10,424.09 lakh; total comprehensive income was ₹7,123.24 lakh versus ₹10,122.51 lakh.

• EPS was ₹7.72 versus ₹11.47; interim dividend was ₹4 per share versus ₹5 per share in FY16.

Outlook and guidance

• GST was expected to benefit organized logistics operators over the long term, with initial implementation likely to bring confusion and freight-volume volatility during transition.

• Fleet and infrastructure additions were planned with a long-term view; growth strategy would be directed after the GST regime stabilized.

• Fuel-price pass-through was being shifted to a day-to-day basis; remedial measures were underway to prevent further deterioration in bus-division performance.