VRL Logistics (VRLLOG) Q4 17/18 earnings summary

Executive summary

• FY18 total income rose 6.85% YoY to ₹193,655.07 lakh; PBT increased 32.37% to ₹13,938.93 lakh and PAT reached ₹9,256.42 lakh.

• Freight volumes were relatively flat for the year but picked up in H2; higher realization per ton and passenger supported growth despite GST disruption and rising fuel and employee costs.

• Strategy emphasized owned infrastructure, fleet additions and monetizing distribution, vehicle-maintenance and IT capabilities; management expected organized logistics operators to benefit as GST stabilizes.

Financial highlights

• Revenue from operations was ₹192,232.03 lakh versus ₹180,308.51 lakh; other income rose to ₹1,423.04 lakh from ₹929.82 lakh.

• EBITDA, reported as profit before finance costs and depreciation, increased to ₹24,846.44 lakh from ₹22,748.13 lakh; PBT was ₹13,938.93 lakh versus ₹10,530.07 lakh.

• PAT rose to ₹9,256.42 lakh from ₹7,047.26 lakh; basic and diluted EPS was ₹10.17 versus ₹7.72.

• Operating cash flow was ₹20,548.32 lakh; capital expenditure was ₹4,733.65 lakh and cash and cash equivalents closed at ₹1,851.81 lakh.

Outlook and guidance

• Management expected GST and e-waybill stabilization to improve freight movement, reduce border delays and favor organized providers; initial volatility, especially among SMEs, was expected to persist.

• A Surat facility was expected to become operational by FY19-end; additional owned infrastructure was planned gradually at key locations.

• Management planned to monetize distribution reach, vehicle-maintenance infrastructure and in-house IT capability through value-added services and logistics solutions.

• A 1,200 high-capacity truck purchase agreement with Ashok Leyland was signed, alongside plans for smaller local pickup and delivery vehicles.