VRL LOGISTICS 2023-24 Annual Report Analysis

Fri, 12 Jul

VRL LOGISTICS has announced its results for the year ended March 2024. Let us have a look at the detailed performance review of the company during FY23-24.

VRL LOGISTICS Income Statement Analysis

• Operating income during the year rose 9.1% on a year-on-year (YoY) basis.
• The company's operating profit decreased by 2.0% YoY during the fiscal. Operating profit margins witnessed a fall and stood at 13.7% in FY24 as against 15.2% in FY23.
• Depreciation charges increased by 35.8% and finance costs increased by 40.3% YoY, respectively.
• Other income grew by 41.9% YoY.
• Net profit for the year declined by 46.4% YoY.
• Net profit margins during the year declined from 6.3% in FY23 to 3.1% in FY24.

VRL LOGISTICS Income Statement 2023-24

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*	% Change
Net Sales	Rs m	26,485	28,886	9.1%
Other income	Rs m	149	211	41.9%
Total Revenues	Rs m	26,634	29,097	9.2%
Gross profit	Rs m	4,030	3,949	-2.0%
Depreciation	Rs m	1,591	2,162	35.8%
Interest	Rs m	562	789	40.3%
Profit before tax	Rs m	2,025	1,210	-40.3%
Tax	Rs m	364	319	-12.2%
Profit after tax	Rs m	1,661	891	-46.4%
Gross profit margin	%	15.2	13.7
Effective tax rate	%	18.0	26.4
Net profit margin	%	6.3	3.1

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VRL LOGISTICS Balance Sheet Analysis

• The company's current liabilities during FY24 stood at Rs 4 billion as compared to Rs 3 billion in FY23, thereby witnessing an increase of 26.2%.
• Long-term debt stood at Rs 2 billion as compared to Rs 1 billion during FY23, a growth of 70.6%.
• Current assets fell 25% and stood at Rs 2 billion, while fixed assets rose 24% and stood at Rs 20 billion in FY24.
• Overall, the total assets and liabilities for FY24 stood at Rs 22 billion as against Rs 19 billion during FY23, thereby witnessing a growth of 17%.

VRL LOGISTICS Balance Sheet as on March 2024

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*	% Change
Networth	Rs m	9,758	9,458	-3.1
Current Liabilities	Rs m	3,062	3,865	26.2
Long-term Debt	Rs m	1,073	1,830	70.6
Total Liabilities	Rs m	18,917	22,140	17.0
Current assets	Rs m	2,789	2,088	-25.1
Fixed Assets	Rs m	16,129	20,052	24.3
Total Assets	Rs m	18,917	22,140	17.0

VRL LOGISTICS Cash Flow Statement Analysis

• VRL LOGISTICS's cash flow from operating activities (CFO) during FY24 stood at Rs 4 billion, an improvement of 33.2% on a YoY basis.
• Cash flow from investing activities (CFI) during FY24 stood at Rs -2 billion, an improvement of 68.4% on a YoY basis.
• Cash flow from financial activities (CFF) during FY24 stood at Rs -2 billion on a YoY basis.
• Overall, net cash flows for the company during FY24 stood at Rs 68 million from the Rs 30 million net cash flows seen during FY23.

VRL LOGISTICS Cash Flow Statement 2023-24

Particulars	No. of months	12	12	% Change
	Year Ending	Mar-23	Mar-24
Cash Flow from Operating Activities	Rs m	3,183	4,239	33.2%
Cash Flow from Investing Activities	Rs m	-1,445	-2,433	-
Cash Flow from Financing Activities	Rs m	-1,709	-1,738	-
Net Cash Flow	Rs m	30	68	127.3%

Current Valuations for VRL LOGISTICS

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 10.2, an decline from the EPS of Rs 18.8 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 600.0, stands at 58.9 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 5.5 times, while the price to sales ratio stands at 1.8 times.
• The company's price to cash flow (P/CF) ratio stood at 18.9 times its end-of-year operating cash flow earnings.

Per Share Data/Valuations

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*
Sales per share (Unadj.)	Rs	299.8	330.2
TTM Earnings per share	Rs	18.8	10.2
Diluted earnings per share	Rs	19.0	10.2
Price to Cash Flow	x	17.0	18.9
TTM P/E ratio	x	15.7	58.9
Price / Book Value ratio	x	5.4	6.1
Market Cap	Rs m	52,571	57,552
Dividends per share (Unadj.)	Rs	5.0	0.0

Ratio Analysis for VRL LOGISTICS

• Solvency Ratios

Current Ratio: The company's current ratio deteriorated and stood at 0.5x during FY24, from 0.9x during FY23. The current ratio measures the company's ability to pay short-term and long-term obligations.

Interest Coverage Ratio: The company's interest coverage ratio deteriorated and stood at 2.5x during FY24, from 4.6x during FY23. The interest coverage ratio of a company states how easily a company can pay its interest expense on outstanding debt. A higher ratio is preferable.

• Profitability Ratios

Return on Equity (ROE): The ROE for the company declined and down at 9.4% during FY24, from 17.0% during FY24. The ROE measures the ability of a firm to generate profits from its shareholders capital in the company.

Return on Capital Employed (ROCE): The ROCE for the company declined and down at 17.7% during FY24, from 23.9% during FY23. The ROCE measures the ability of a firm to generate profits from its total capital (shareholder capital plus debt capital) employed in the company.

Return on Assets (ROA): The ROA of the company declined and down at 7.6% during FY24, from 11.8% during FY23. The ROA measures how efficiently the company uses its assets to generate earnings.

Key Ratio Analysis

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*
Current ratio	x	0.9	0.5
Debtors’ Days	Days	113	112
Interest coverage	x	4.6	2.5
Debt to equity ratio	x	0.1	0.2
Return on assets	%	11.8	7.6
Return on equity	%	17.0	9.4
Return on capital employed	%	23.9	17.7

To see how VRL LOGISTICS has performed over the last 5 years, please visit here.

VRL LOGISTICS Share Price Performance

Over the last one year, VRL LOGISTICS share price has moved down from Rs 735.8 to Rs 600.0, registering a loss of Rs 135.8 or around 18.5%.

Overall, the S&P BSE SENSEX is up 22.5% over the year.

(To know more, check out historical annual results for VRL LOGISTICS and quarterly results for VRL LOGISTICS)