VRL Logistics profitability decreases in Q3FY16: share price on the decline

VRL Logistics announced its Q3FY16 results. The company’s revenue increased by slightly 0.22 per cent to Rs 431 crore in Q3FY16 as compared to same period in previous financial year. Its total expenditure increased by 2.84 per cent to Rs 365 crore in Q3FY16 on a yearly basis.

VRL Logistics’ EBITDA declined by 12.27 per cent to Rs 65.48 crore in Q3FY16 as compared to same period in previous fiscal year. The company’s EBITDA margin contracted by 216 basis points to 15.2 per cent on a yearly basis. Its interest expense reduced by 56.96 per cent to Rs 6.25 crore in Q3FY16 as compared to same period in previous financial year. VRL Logistics’ net profit also decreased by 1.46 per cent to Rs 24.73 crore in Q3FY16 on a yearly basis. The company’s net profit margin contracted by 10 basis points, 5.74 per cent in Q3FY16 on a yearly basis.

On segmental revenue front, VRL Logistics earned 78.34 per cent from Goods Transport segment; 19.48 per cent from Bus operations segment; and remaining from sale of power and Air chartering service segment during December 2015 quarter.

Considering nine month financials, VRL Logistics’ revenue increased by 2.52 per cent to Rs 1306 crore in 9MFY16 as compared to same period in previous financial year. The company’s EBITDA too rose by 2.3 per cent to Rs 225 crore in 9MFY16 on a yearly basis. Its net profit was also boosted by 24 per cent to Rs 89 crore in 9MFY16 on a yearly basis. VRL Logistics has healthy debt to equity ratio and stands at 0.47x as of Q3FY16 from 1.2x as of FY15. The company’s gross debt improved from Rs 443 crore in FY15 to Rs 238 crore in Q3FY16.

VRL Logistics added five locations to the existing network of Goods Transport business in Q3FY16. The company added 42 goods transport (GT) vehicles and net total GT vehicles were standing at 3739 as on December 2015 quarter.

The share price of VRL Logistics declined by 5.54 per cent on bourses in early trades; and is trading at Rs 377 on an intraday basis.

VRL Logistics is engaged in the business of providing goods and passenger transportation services. The company's segments include goods transport; bus operations; sale of power and air chartering service. VRL Logistics operates through its owned fleet of nearly 375 buses, which includes the Multi Axle Volvo seater buses; sleeper buses; and semi sleeper buses. Its wind farm consists of around 34 wind turbine generators. Its passenger transportation business operates in the States of Karnataka, Maharashtra, Andhra Pradesh, Telangana, Tamil Nadu, Gujarat, Rajasthan and Goa.