VRL Logistics Q4FY16 standalone net profit declines 31.8% yoy to Rs.13.21 crore : Misses Estimates

The company’s standalone revenue stood at Rs. 415.63 crore, up 4.59% yoy but down 3.62% qoq.

May 23, 2016 3:51 IST | India Infoline News Service
VRL Logistics, largest pan-India surface logistics and parcel delivery service provider, reported standalone net profit of Rs.13.21 crore for the quarter ended March 31, 2016, registering decline of 31.8% yoy and 46.59% qoq. The company’s revenue stood at Rs. 415.63 crore, up 4.59% yoy but down 3.62% qoq.

Its standalone core operating profit of Rs. 48.58 crore for the quarter, declined by 17.94% yoy and 26.25% qoq. Operating profit margin for the current quarter at 11.69% contracted by 321 bps yoy and 358 bps qoq.

For the year ended March 31, 2016, the company reported standalone net profit of Rs. 102.31 crore, growing by 12.15% yoy. Its standalone revenue for the period stood at Rs. 1,722.53 crore, registering growth of 2.97% yoy.

VRL Logistics core operating profit stood at Rs. 267.72 crore, recording decline of 2.44% yoy. Operating margin for the current period at 14.79% contracted by 161 bps yoy.

Higher employee cost dents VRL’s profitability in Q4FY16:

VRL Logistic’s reported less than expected PAT for the quarter ended March 31, 2016 hurt by higher expenses. The company’s total expenses edged higher by 0.55% qoq and 9.25% yoy to Rs. 389.61 crore for the quarter ended March 31, 2016. This was on account of higher employee expenses which went up by 3.42% qoq and 26.07% yoy to Rs. 65.95 crore for the quarter under review. Meanwhile, the company’s Adjusted PAT slid by  18.25% yoy to Rs. 20.64 crore for the quarter under review. This was after reversing the effect of exceptional item of Rs. 3.72 crore in Q4FY15.

Result Highlights: (Rs. in crore)

Reported Results IIFL Estimates Variance (%)
Standalone Revenue 415.63 434.72 [4.39]
Standalone Net Profit 13.21 25.2 [47.58]

Bloomberg estimated the company’s standalone net profit at Rs. 26.50 crore.
Stock Commentary:

VRL Logistics Ltd is currently trading at Rs. 394, down by 5 points or 1.25% from its previous closing of Rs. 399 on the BSE.

The scrip opened at Rs. 405.35 and has touched a high and low of Rs. 406.05 and Rs. 392 respectively. So far 72055(NSE+BSE) shares were traded on the counter. The current market cap of the company is Rs. 3640.62 crore.

The BSE group 'B' stock of face value Rs. 10 has touched a 52 week high of Rs. 478.7 on 01-Sep-2015 and a 52 week low of Rs. 275.6 on 03-Jun-2015. Last one week high and low of the scrip stood at Rs. 415 and Rs. 387 respectively.

The promoters holding in the company stood at 69.57 % while Institutions and Non-Institutions held 23.72 % and 6.71 % respectively.

The stock is currently trading below its 200 DMA.

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