VRL Logistics conducted the conference for Q3 FY22.
Here are the conference call highlights
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Here are the conference call highlights
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Business Updates:
โข Business volume increased in Good Transport business.
โข Overall diesel cost reduced by 12Rs per litre due to govt. reduction of duties. Cost of diesel restricted to 29%, else it would be higher.
โข Post this bio-diesel was not feasible, hence share reduced.
โข Business volume increased in Good Transport business.
โข Overall diesel cost reduced by 12Rs per litre due to govt. reduction of duties. Cost of diesel restricted to 29%, else it would be higher.
โข Post this bio-diesel was not feasible, hence share reduced.
Industry Updates:
โข With expansion in different geographies, revenue will be expected to increase.
โข Major growth contribution is coming from textile, where contribution has increased from 16% to 19%.
โข Agriculture Commodities share increased from 8% to 12%.
โข With expansion in different geographies, revenue will be expected to increase.
โข Major growth contribution is coming from textile, where contribution has increased from 16% to 19%.
โข Agriculture Commodities share increased from 8% to 12%.
Good Transport Business
โข YoY Growth: 19% (Realization growth 7%, increase in tonnage 11).
โข Increase in tonnage was on account of addition of new customer, expansion in untap market & shifting of customer from unorganized market to organized market.
โข YoY Growth: 19% (Realization growth 7%, increase in tonnage 11).
โข Increase in tonnage was on account of addition of new customer, expansion in untap market & shifting of customer from unorganized market to organized market.
Bus Operation:
โข Business grew inspite of decrease in 45 buss. Growth was witnessed due to increase in passenger, increase in seat occupation & increasing realization.
โข No of bus increased to 280 buses
โข With reduction in buses revenue will be less but margins will be higher
โข Business grew inspite of decrease in 45 buss. Growth was witnessed due to increase in passenger, increase in seat occupation & increasing realization.
โข No of bus increased to 280 buses
โข With reduction in buses revenue will be less but margins will be higher
Utilization
- Hub to Hub: 100%
- Hub to Spoke: 65-70%
- Passenger Vehicle: 85% (1,100 Rs per passenger- which was 1,047 Rs in Q2)
Surat: 3Lack Tone facility, with improvement of 22% tonnage.
- Hub to Hub: 100%
- Hub to Spoke: 65-70%
- Passenger Vehicle: 85% (1,100 Rs per passenger- which was 1,047 Rs in Q2)
Surat: 3Lack Tone facility, with improvement of 22% tonnage.
Price Rise:
โข There wont be reduction in the customer price for diesel cost.
โข Freight rates are expected to remain at same level, hence the co. will not decrease the price.
โข With respect to retail, prices of diesel will be cheaper for VRL for atleast 3-4Rs per litre.
โข There wont be reduction in the customer price for diesel cost.
โข Freight rates are expected to remain at same level, hence the co. will not decrease the price.
โข With respect to retail, prices of diesel will be cheaper for VRL for atleast 3-4Rs per litre.
Margins:
โข Employee cost are expected to increase by 10% in Q4. However with reduction in diesel price margins are expected to be maintained.
โข Increase in realization in expected to be bus, which will result in increase in margin.
โข Employee cost are expected to increase by 10% in Q4. However with reduction in diesel price margins are expected to be maintained.
โข Increase in realization in expected to be bus, which will result in increase in margin.
Raw Material:
โข Benefit of fuel price was there 2 months, if the price don't rise then there would be benefit for 1 more months.
โข With Bio-fuel not feasible as of now, the share is reduce. However co. is flexible to usage in terms of price.
โข Benefit of fuel price was there 2 months, if the price don't rise then there would be benefit for 1 more months.
โข With Bio-fuel not feasible as of now, the share is reduce. However co. is flexible to usage in terms of price.
CAPEX:
โข CAPEX: 167 cr for FY22 of which 107 cr is spend in Good Transport.
โข There would be no expansion in bus segment for near term.
โข With co. current cash flow co. will be able to spend capex & remaining amount be utilized to pay off the debt.
โข CAPEX: 167 cr for FY22 of which 107 cr is spend in Good Transport.
โข There would be no expansion in bus segment for near term.
โข With co. current cash flow co. will be able to spend capex & remaining amount be utilized to pay off the debt.
Other:
โข Net Debt: 101 cr. Mgmt expect Net Debt to reach to mere 30-35cr Net Debt next year- (if there are no unplanned capex)
โข Plan to increase 100+ branches in eastern & north eastern market for which 60 are already open.
End
โข Net Debt: 101 cr. Mgmt expect Net Debt to reach to mere 30-35cr Net Debt next year- (if there are no unplanned capex)
โข Plan to increase 100+ branches in eastern & north eastern market for which 60 are already open.
End
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