VRL Logistics Ltd's Q2FY19 standalone net profit declines 4.46% yoy to Rs20.63cr : Misses Estimates

The company’s standalone revenue stood at Rs516.99cr, up 14.39% yoy but down 2.17% qoq.

Nov 03, 2018 07:11 IST India Infoline Research Team

VRL Logistics Ltd Q2FY19

Standalone Results Q2FY19: (Rs. in cr)

Q2FY19 YoY (%)
Revenue 516.99 14.4
EBITDA 54.06 [3.1]
EBITDA Margin (%) 10.5 [150]
Net Profit (adjusted) 20.63 [4.5]
***EBITDA margin change is bps
VRL Logistics reported 14.4% yoy growth in its revenue to Rs517cr in Q2FY19. The increase in the revenue was aided by 17.1% yoy growth in its largest segment i.e. goods transport. EBITDA declined 3.1% yoy to Rs54.1cr in Q2FY19 vs. Rs55.8cr in Q2FY18. EBITDA margins in Q2FY19 stood at 10.5% vs. 11.4% in Q1FY19 and 12.3% in Q2FY18. PAT declined 4.5% yoy to Rs20.6cr in Q2FY19 vs. Rs21.6cr in Q2FY18. The decline in the profitability was due to 19.2% yoy rise in the Freight handling and servicing cost.

Other highlights 
  • Revenue from goods transport increased by 17.7% yoy to Rs418.9cr in Q2FY19. EBITDA margins of goods transport segment stood at 11.9% in Q2FY19 vs. 10.3% in Q1FY19 and 12.9% in Q2FY18.
  • Revenue from bus operations increased by 3.9% yoy to Rs81.1cr in Q2FY19. On the EBITDA level, bus operations segment reported loss of Rs2.1cr vs. loss of profit of Rs18.3cr in Q1FY19 and profit of Rs5.2cr in Q2FY19.
  • Revenue from passenger transport (air) decreased by 23.2% yoy to Rs2.6cr in Q2FY19. This segment reported EBITDA margin of 20.7% in Q2FY19 vs. 10.3% in Q1FY19.
  • Goods transport segment contributed 83% of its Q2FY19 revenue while rest 16% was contributed by bus operations, passenger transport (air).
  • Company has added 70 vehicles of 29 tonnes capacity and 191 vehicles of >8 tonnes capacity. Total 17 vehicles were scrapped, hence net addition of vehicles is 244 in Q2FY19. Total goods transport vehicles are 4,251 by end of Q2FY19.

Technical View:

VRL Logistics Ltd ended at Rs. 275, up by 13 points or 4.96% from its previous closing of Rs. 262 on the BSE.
The scrip opened at Rs. 265.50 and touched a high and low of Rs. 275 and Rs. 264 respectively. A total of 46,813 (NSE+BSE) shares were traded on the counter. The stock traded above its 200 DMA.

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