Company Update : VRL Logistics Ltd By Motilal Oswal Financial Services Ltd
Revenue in line; lower fuel costs drive EBITDA beat
Earnings snapshot – 3QFY25
* Revenue grew 12% YoY to ~INR8.3b (+3% QoQ), in line with our estimate. Volumes rose 1% YoY to 1.1m tonnes, while realizations improved 11% YoY.
* EBITDA margin stood at 20.2% vs. our estimate of 16.2%. The margins were supported by the price hikes implemented at the end of 1QFY25. Further, the fuel costs as a % of revenue declined as the company procured more from refineries (from 22% in 3QFY24 to 40% in 3QFY25). Further, the lorry hire charges as a % of revenue declined due to an improvement in km run by the VRL-owned vehicles.
* EBITDA jumped 76% YoY to INR1.7b in 3QFY25 (26% above our estimate).
* Strong operating performance led to an increase in APAT to INR594m in 3QFY25 from INR 137m in 3QFY24 (our estimate was INR419m).
* Capex incurred in 3QFY25 stood at INR2.8b including the Bangalore Hub. Net debt rose to INR4.65b at the end of Dec’24 (INR2.6b at FY24 end).
* Owned vehicles stood at 6,101, while the total number of branches at the end of Dec’24 was 1,248.
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