VRL Logistics (VRLLOG) Q4 19/20 earnings summary

Executive summary

• FY20 revenue grew 0.54% to ₹212,885.65 lakh; PBT fell 25.74% to ₹10,431.68 lakh, while PAT was ₹9,011.49 lakh, down 1.96%.

• COVID-19 halted operations from late March, disrupted freight and passenger travel, and added idle-capacity and hygiene costs; FY21 earnings growth was expected to be materially affected.

Financial highlights

• Revenue from operations was ₹211,853.97 lakh versus ₹210,954.40 lakh; EBITDA was ₹30,858.48 lakh, including an ₹8,393.53 lakh uplift from Ind AS 116.

• EBIT fell 6.80% to ₹14,105.05 lakh; PBT declined 25.74% to ₹10,431.68 lakh and PBT margin fell to 4.90% from 6.63%.

• PAT was ₹9,011.49 lakh versus ₹9,191.61 lakh; basic and diluted EPS was ₹9.97 versus ₹10.17.

• Excluding Ind AS 116, FY20 PBT was ₹11,000.44 lakh and PAT was ₹9,437.10 lakh; reported adoption reduced PBT by ₹568.76 lakh and PAT by ₹425.61 lakh.

• Tax expense included a ₹1,289.82 lakh deferred-tax reversal after electing the Section 115BAA tax regime.

Outlook and guidance

• FY21 was expected to be a one-time earnings aberration, with significant Q1 losses anticipated; recovery was expected from Q2, volumes to rise from August 2020, and freight volumes to normalize by Q4.

• Healthy financial growth was expected to resume in FY22; full-year FY21 results remained difficult to quantify amid rapidly changing conditions.

• Freight rates were raised across customer categories to offset higher COVID-related overheads; drivers and vehicles were being selectively deployed on routes with sufficient loads.