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The Logistics industry is crucial for the efficient movement of products and services across the nation and in the global markets.

The logistics business is highly fragmented and has innumerable participants, including major local players, worldwide industry leaders, the government postal service, and rising start-ups that focus on e-commerce delivery. The industry includes transportation, warehousing, and value-added services like packaging, labelling, and inventory management. With the advent of technology-driven solutions such as transportation management systems (TMS) and warehouse management systems, Indias logistics industry has witnessed tremendous development in recent years (WMS). These solutions have assisted logistics firms in increasing operational efficiency, lowering costs, and improving customer service. (Source : India Brand Equity Foundation)

Advancements in digital technologies, changing consumer preferences due to e-commerce, government reforms, and shift in service sourcing strategies are expected to lead the transformation of the Indian logistics ecosystem. Digitalization will improve the efficiency and performance in freight management and port operations. Warehouse automation will help achieve operational efficiencies to counter supply-chain cost pressures in the industry. Increased investment in infrastructure, last-mile connectivity, and emerging technologies are streamlining the logistics landscape in India. As per Summary of Economic survey 2022-23, issued by the Ministry of Finance, The Indian economy is expected to grow over 7 per cent in the current financial year 2023-24. Strong growth supported by government reforms, transportation sector development plans, growing retail sales, and e-commerce sector are likely to be the key drivers of the logistics industry in India. Manufacturing in India holds the potential to contribute up to 25%–30% of the GDP by 2025 which will drive the growth of the transportation segment in India.

As per India Brand Equity Foundation report on Warehousing and Logistcs sector in India, The logistics sector represents five percent of Indias Gross Domestic Product and is predicted to account for 14.4% of the GDP. Adding to the growth are the new policies that are set to give the industry a much-needed push. Improving efficiency of the logistics sector is of high importance for the countrys economy as it boosts economic growth, grows exports through global supply chains and generates employment. Logistics are fundamental part of business infrastructure and one of the key enablers in the global supply chain. The impetus given by the government to build the infrastructure in the recent budget is the biggest positive for the logistics sector.

The Logistics sector in India currently employs 22 million people and serves as the backbone for various businesses. The logistics sector in India was valued at US$ 250 billion in 2021, with the market predicted to increase to an astounding US$ 380 billion by 2025, at a healthy 10%-12% year-on-year growth rate. Moreover, the government is planning to reduce the logistics and supply chain cost in India from 13-14% to 10% of the GDP as per industry standards.

The logistics market in India is forecasted to grow at a CAGR of 10.5% between 2019 and 2025. It has been awarded infrastructure status which has made it easier for investment inflows and has become a major growth driver of the logistics industry. Increasing investments and trade points toward a healthy outlook for the Indian freight sector. Grant of infrastructure status to logistics, the introduction of the E-Way Bill, E-Invoice and GST implementation are set to streamline the logistics sector in India. Setting up of a logistics division under the Department of Commerce, technology upgrades, and development of dedicated freight corridors and logistics parks are also major moves to upgrade the logistics landscape.

As per Ernst & Young report on ‘Envisioning the future of Indian logistics@2047, Indias freight movement is heavily skewed toward road transportation, which moves 66% of cargo (in ton-km). This is followed by rail (31%), shipping (3%) and air (1%). To aid this cargo movement, India has an extensive network of support infrastructure comprising 129+ In-land container depots, 168+ container freight station, and ~300 mn. sq. ft. of warehousing space. The sector handles ~10,000 commodities and employs ~22m people. It is one of the highly fragmented sectors, with only 10% of the sector operated by organized players.

This uneven distribution of modes of transportation has led to prompting the GOI to undertake multiple logistics specific initiatives, such as Gati-Shakti, National Logistics Policy and others. These programs aim to streamline Indias logistics sector by making it more green, agile, transparent and integrated. India aims to reduce logistics cost from 13% to 14% of GDP, to 8% to 10% of GDP, by 2030.

The GOI has launched several programs with a focus on building new roads, railways, ports infrastructure, etc.

This is complimented with measures to attract private capital and implement administrative reforms to streamline processes for planning and executing infrastructure investments. GatiShakti is a critical component of this strategy, which aims to integrate planning and implementation of infrastructure projects. As a result, programs such as Bharatmala, Dedicated freight corridor and Sagarmala were developed. Several Multi Modal Logistics Parks (MMLPs) are being developed to connect multiple modes of transport. The average speed of road development has increased from 20.79 km/day in FY22 to 22.23 km/ day till Jan-23.


In order to ensure seamless movement of traffic through fee plazas and increase transparency in collection of user fee using FASTag, the National ElectronicTollCollection(NETC)programme,theflagshipinitiative of Ministry of Road

Transport and Highways, has been implemented on pan India basis. The National Payment Corporation of India (NPCI) is the Central Clearing House (CCH). There are thirty eight (38) banks (including Public and Private sector banks) engaged as issuer banks for FASTag issuance to road users and fourteen (14) acquirer banks to process the transactions at fee plazas.

Efforts are on to to start a GPS-based toll system in place of FASTag to ensure seamless payment and vehicle movement on national highways. Under GPS-based tolling, vehicles will need to be fitted with a device that can track its movement on the highways. Once such a vehicle enters a tolled road, a highway system would track the vehicle and toll will be charged based on the distance travelled at the exit point the highway.

Material Source : Ministry of Finance, Ministry of Road transport & Highways, E&Y, Niti Ayog, India Brand Equity Foundation


VRLs core strength is its large size and scale of operations undertaken on a pan India basis with the largest owned vehicle fleet. With a track record of over four decades, we are one of the largest distribution networks in India. We are the only "Asset- Right" organized player in Less than Truck load logistics business in India. Our wider spread provides us greater stability during regional disturbances. VRL is a well-established brand in the country when it comes to surface transportation and the industry leader in the parcel transportation space. As on 31st March 2023, the Company operated with the total of 5671 owned vehicles having carrying capacity of 82657 tons, and several owned premises, including branches, offices and transhipment hubs. We maintain our stand that your Company also occupies the leadership position in the country for Less than Truck Load (LTL) movement of goods and it is only the absence of validated industry data that prevents us from emphatically acclaiming this fact. The following graph depicts the YoY increase in number of Vehicles and Capacity.

The two major advantages that your Company enjoys over its competition are its well established wide network of branches and agencies and its owned fleet of commercial vehicles with dedicated in-house vehicle body designing and vehicle maintenance facilities to cater to the parcel transportation. The Company presently operates through 1126 branches across 25 States and 4 Union Territories in India and its reach is unmatched for the offering of LTL goods transportation services. Your Company is also one of the largest fleet owner of commercial vehicles in the Country and the same enables the Company to set unparalleled standards in the movement of LTL cargo in India through Hub and Spoke model in terms of service levels and safety of consignments.

The below figure depicts the ‘Hub and Spoke consignment delivery model followed by the Company.

The hub-and-spoke model creates numerous benefits, including:

Continuous movement for loads thanks to centralized handoffs.

Reduced lengths-of-haul, which improve scheduling, reduce transit time and help drivers

Consistent on-time performance, which enhances service levels and ensures products arrive in the right place at the right time.

Improved driver recruiting and retention.

This produces additional benefits, including higher tenure, route consistency, increased transit dependability and performance, and improved safety.

Reduced costs and enhanced productivity

Lower carbon footprint, because few empty miles driven reduces wasted fuel and emissions.

Consistent pricing mitigates the risk of third-party carrier price fluctuations.

Vehicle utilization:

Optimum utilization of vehicles due to efficient load distribution

The policy at VRL is to own its vehicles for offering LTL services as also own significant infrastructure of ware houses and maintenance facilities. We also have a dedicatedin-houseITsetupwhichissignificantstrength of your Company and the same has rendered a lot of control, cost savings and business flexibility over infrastructure of the Company is operated internally and the in-house developed ERP enables the Company to seamlessly operate on an online real time basis across all its business verticals as also integration with agencies and select customers.

Your Company also has built up capability to maintain its owned vehicle fleet internally and the cost savings arising out of economies of scale by way of tie-ups with fuel suppliers, vehicle manufacturers for supply of spare parts, tyres etc., as well as ongoing in-house R&D in this domain have enabled the Company to utilize its vehicles for a significantly longer term vis-a-vis the industry as also at significantly lesser maintenance costs.

Your Company benefits from in-house research and development with a capability to with newer products and technologies on its owned vehicles. Several of its key findings have today been accepted and implemented even by vehicle manufacturers. In combination with own vehicle body designing facility with technology to fabricate lighter and longer bodies, that reduces the overall weight of the vehicle and ensure higher payload, and also with combination of multiple types of commodities handling such as heavy and bulk consignments inside goods carriages, the goods carriages can be utilized at higher capacity as compared to the earlier periods.

Overall, the in-house maintenance facility helps the Company to better utilize its fleet than competition as the vehicles owned by the Company can be used for longer period of time vis-a-vis outside vehicles. Also ~36% of the Goods transportation vehicles are fully depreciated ensuring vehicle fleet availability with no additional depreciation costs. Also ~95% of the Goods Transportation fleet is debt free with no associated finance costs.

Your Company also has a very well diversified customer base of ~8 lakhs plus across the various

2022-23, the Companys largest customer and the top 10 customers put together contributed only 1% and 3% of the revenues of the Goods Transport business respectively. This has ensured that the Company has no dependencies on any specific customers or product categories. Similarly, there are no geographical or product related dependencies for the business which better insulates your Company vis-a-vis competition. VRL also boasts the lowest trade receivables in the industry.

With emphasis on connectivity, the management have taken the right steps to identify and expand the branch network. Going further this would lead to openings of newer business premises and help into tapping newer sectors from which the company would greatly benefit.

In the forthcoming fiscal your company proposes to add 1,667 customized trucks. The following table depicts the capex details.

Proposed capacity addition 1,667 customized trucks

Period within which capacity is to be added

Fleet addition is expected to be made during FY 2024.

lnvestment required

The capex planned, at list price, would translate to a total outlay of Rs697 crores approx. including the cost of Chassis at list prices, body building, registration, insurance and margin for contingencies. Given the past experience, relationship with the vendors as also the economies of scale the company expects a significant reduction in the total outlay. The Company has crystalized the fleet addition requirements as stated in the table above and in the process of the negotiating with the CV suppliers for firming up the prices for such planned fleet addition.

Mode of Financing Rationale

Mix of Vehicle loans from Banks and internal accruals Ongoing implementation of Vehicle Scrapping Policy announced by the Government of India envisages the company to replace its existing older vehicles. During FY 2024, the company is expected to withdraw around 1189 vehicles that are more than 15 years in operation


The transportation and logistics sector is grappling with several structural challenges such as:

Fuel price fluctuations

Shortage of trained drivers and labour

Increase in toll charges due to more & more roads being covered under toll as also frequent increase in rates of existing toll rates.

As the industry is fragmented, there are several intermediaries in the ecosystem leading to multiple cargo exchanges, . therebyincreasingcostsandoperationalinefficiencies Lack of end-to-end supply chain visibility and ability to track and trace the cargo remains a challenge for the service providers and customers.

The sector is also constantly grappling with inefficiencies, however, because percent of GDP (in developed nations these costs amount to 8 to 10 percent of GDP). These inefficiencies stem from three reasons:

1. The two most unorganized sectors dominate the logistics market road transport and warehousing. Road transport is particularly deeply fragmented truck owners with fewer than five trucks constitute more than half of all goods vehicles on the road. 2. Indias modal mix is heavily skewed towards road, with 60 to 65 percent of transport happening via road compared to 25 to 30 percent in developed countries, prompting higher costs. The use of inland waterways and coastal shipping is limited, while the containerization of cargo in rail remains minimal. 3. Indirect costs are high and include inventory carrying costs, theft and damages often because of poor planning, forecasting and lack of proper management of stock.

Your Company, being one of the organized players in this highly fragmented and unorganized market, stands to benefit as gradually businesses realize the costs of inefficiencies that smaller and regional operators present. Such gradual shift can be particularly seen after the post-pandemic economic revival also aided by a stricter GST regulatory environment.

Organizations have realized that they need to build networks and/or channels that will allow them to adapt quickly and easily in a changing environment. Organizations will have to build systems that can optimize costs, accelerate reaction times and diversify channels. For networks to adapt quickly and function smoothly, it is also important to build agile teams willing to change and adapt rapidly to the external environment. Swift reaction to disruptions can hasten change and minimize damage.

Given the same as also the very nature of LTL freight being transacted, we believe that your Company would easily adapt to any given change being witnessed across markets as owing assets and operating offices the requisite flexibility and option to moderate or reorganize any changes to freight movements.

The surface transport industry suffers from an acute driver shortage issue and the said problem also affects your Company. The management opines that this is the single most important factor that affects all the transporters across the country. Your Company is however relatively better placed in this regard. VRL offers best in class salaries and emoluments including incentives to its drivers which help retention of this cadre. The Company also has enlisted its drivers on its payrolls and extends all statutory benefits such as PF, ESI, etc. to its drivers apart from significant a good work environment as well and also takes care of their skill development by conducting routine training programs as well as awareness camps for its drivers. Your Company also conducts frequent health checkup and health camps for the drivers so as to make them more health conscious. Shortages however still remain and your Company is striving to further encourage more and more individuals to take up driving profession by visiting potential villages and towns and trying to remove the stigma being associated with the driving profession. The management also propagates at several forums the necessity of a joint industry effort to overcome this problem which is only expected to become more challenging in the days to come.

Lack of owned infrastructure at key centers is another present day weakness in the managements opinion. The Company has established owned transshipment hubs at key locations like Hubballi, Mumbai, Surat, Mangalore, Mysore, Vijayapura, Ballary Gangavati, and Davangere. Long term leases have also been entered into at key locations such as Chennai, Delhi, Hyderabad, Bengaluru, Pune, Kolkata, etc. Owned infrastructure enables the company to set up good quality maintenance facilities as also better infrastructure for goods movement and material handling. The ownership of premises at such key business locations provides the Company with a lot of flexibility in conducting business operations considerable cost savings and also enables the Company to scale up its service levels. Setting up such owned infrastructure would however entail significant investments which in turn affect the return ratios and the management the two so as to optimize stakeholder value as well as to cater to business growth for future. Your Company would consider gradually expanding its owned infrastructure at such key locations in the years to come.


The present day stabilization of the GST regime has necessitated several documentation requirements to which organized players are better suited. Be it e-waybill compliance and providing necessary information to the customers for their compliances etc.

The mandatory E-Invoicing turnover threshold for business entities is now reduced to Rs5 crore from 01.08.2023. E-invoicing was made mandatory for business entities with Turnover of Rs500 crores and above from October-2020. This was further limited to Rs20 Crores and above from April-2022. Now, with all business entities with turnover of Rs5 crores and above required to e-invoice, this would further lay emphasis on entities being more compliant. This would present additional business opportunity to your Company as smaller businesses would now scout for better logistics services from a compliance perspective. The vehicle scrappage policy is a government-initiated program to replace old vehicles from Indian roads. According to the new policy, commercial goods vehicles greater than 15 years will have to be scrapped if they do not pass the fitness and emission tests.

The imminent implementation of scrappage policy is being tentatively viewed by the road transport industry as there would be a very significant reduction in the number of vehicles plying on the roads. This however would be a for your Company. The eventual situation of higher demand for vehicles would work favorably and coupled with the inevitable freight rate hike caused by such policy implementation would lead to a higher margins for the Company. Also, given the internal expertise the company has on the vehicle maintenance front al useful spare parts from the vehicles getting scrapped would be available for usage apart from the one-time salvage income expected. It is pertinent to take note that any such scrappage would also not entail any hit to the Companys profitability as such older vehicles are fully depreciated.

Your Company has 1189 vehicles which are more than 15 years old as of March 31, 2023 with a total capacity of 12946 tons i.e. 15.66% of total capacity & 20.97% of total vehicle count. The management has however ensured that orders for higher capacity replacement vehicles are already put in place.


Fluctuations in fuel prices resulting from diesel de-regulation, lorry hire charges payable to third party vehicles and input costs especially those related to tolls as also others like rent, salary etc. have a significant bearing on the margins. These represent a significant portion of the operating costs and any inability to pass on the profit margins adversely. In particular, the cost of fuel has increased in the recent years regularly and fluctuates significantly due to various factors which are beyond our control. Historically, due to low customer dependencies, the Company has been in a position to pass on predominantly or at times even completely such increases to customers through periodic increase in freight rates. However, the ever present volatility represents a considerable threat to our result of operations.

The Companys operations could also be affected owing to development of newer policies by the different State Governments of the country. To quote an example, several states / cities have prohibited the entry of commercial diesel operated vehicles that are beyond a certain age. This necessitates the shifting of older vehicles and deploying these over other permitted routes which entails a cost. Also, one can never be certain as to when similar decisions would be implemented across other States and major cities which could affect us adversely. The Companys business operations are totally dependent on the road network in India. There are various factors that affect the road network such as political unrest, bad weather conditions, natural calamities, regional disturbances or even third party negligence that can affect the condition of vehicles and cargo. Even though the Company undertakes various measures to avoid or mitigate such factors to the extent possible, some of these have the potential of causing extensive impact on operations and assets.


Prior to the current fiscal year, the company operated in four segments namely:

1. Goods Transport

2. Bus Operations

3. Wind power

4. Transportation of Passengers by Air

During the current year FY 2022-23, the company made a strategic decision to focus only on the High growth oriented Goods Transport Business.

The Company has, during the year executed a Business Transfer Agreement for the transfer of its Bus Operations Business as a going concern on a slump sale basis. The Company also concluded sale of its Wind Power Business as a going concern on a slump sale basis. These transactions resulted in the Company making a Profit of Rs187 crores and the said amount is shown as Exceptional Items in the Profit & Loss Account. The Company has realized an amount of Rs223 Crores net of taxes on these transactions. The Company has used these proceeds predominantly for Capital Expenditure related to Goods Transport business and for repayment of debt Upon the hiving off of these two businesses, the company now is only engaged in the Goods Transport Business which constitutes a single reportable business segment. Accordingly "Transport of Passenger by Air" segment which was previously considered as reportable segment, is no longer considered as reportable segment. The Board of Directors has, at its meeting held on May 20, 2023, granted an in-principle approval for the sale / transfer of the Companys ‘Transportation of Passengers by Air Business by way of a slump sale, (including to any related party), subject to receipt of all applicable clearances and approvals from the concerned regulatory authorities.

Going forward, your company will have only one business which is the High Growth oriented Goods Transportation Business. As such, we would be focusing solely on the performance of the Goods Transportation business in the coming paragraphs.


In the press release issued by the Ministry of Finance, GST collections in April touched all time high of Rs1.68 lakh crores which have been driven by an 11 year high GDP growth.

Further, mandatory e-invoicing being limited to Rs5 Crores and above from 01.08.2023 would further lay emphasis on even smaller entities on being more compliant. In the aftermath of the pandemic, financially strong and organized players expense of smaller and marginal players who dominate the industry. This was seen last year as well. The inherent strength in our business model ensures that our operations are spread across the country, catering to variety of products across industries with wide range of Customers. The Company is not dependent on any particular customer or industry for its revenues. We are doing an internal review and are conducting focused state-region level meeting to increase the freight density in the local pockets for growth and we are encouraged by the response to such initiative. During the year 184 new Branches were added. The said increase in the branches contributed an increase of 5.12% to the overall delivery tonnage and the same is expected to significantly increase in the days to come. Going forward, your company has tremendous potential to expand their network especially in East, North and North-Eastern Geographical areas of the country as we are having a lower density of branches in these areas.


The Company has an Internal Control System, commensurate with the size, scale and the nature of its operations. The Internal Control function emanates at the Board level and its scope and authority of the Internal Audit function is well defined. To maintain objectivity and independence, the Internal Audit function reports to the Chairman of the Audit Committee of the Board & to the executive Chairman and the Managing Director. The Internal Audit Department monitors and evaluates the efficacy and adequacy of internal control system in the Company, its compliance with operating systems, accounting procedures and policies across the Company. Based on the report of internal audit function, process owners undertake remedial action in their respective areas and thereby strengthen the controls. Significant audit observations and recommendations along with corrective presented to the Audit Committee of the Board.

As regards the operation of internal controls, majority of these have been inbuilt in the internal procedures established by the organization which are also documented internally. These include in details the methodology to be adopted right from transacting bookings, effecting consignment deliveries, etc. and also describes the practices to be followed for the smooth operation of business. Inspection teams are formed at the head office level as well as at the transshipment level and cover the entire branch network of the Company periodically for exhaustive inspection for adherence to the set procedure. Deviation from the laid down procedure is escalated to the Functional heads as also directly to the Executive Directors.

The Company had laid down guidelines, policies, procedures and structure to enable implementation of appropriate internal financial controls across the company. These control processes enable and ensure the orderly and efficient business, including safeguarding of assets, prevention and detection of frauds and errors, the accuracy and completeness of the accounting records and timely preparation & disclosure of financial statements. There are control processes both on manual and IT applications including ERP applications, wherein the transactions were approved and recorded. Review and control mechanisms are built in to ensure that such control systems are adequate and operating effectively.

Other control processes are IT driven and the in-house information technology capabilities ensure that due flexibility is available in the system to further strengthen controls as the case may be. Your management appreciates the need to remain efficient in their workings and recognized their responsibility in establishing controls as also effectively implementing them and monitoring their effectiveness on a periodic basis.

Other control processes are IT driven and the in-house information technology capabilities ensure that due flexibility is available in the system to further strengthen controls as the case may be. Your management appreciates the need to remain efficient in their workings and recognizes its responsibility in establishing controls as also effectively implementing them and monitoring their effectiveness on a periodic basis


(Rsin lakhs)


Year Ended 31st March, 2023 Year Ended 31st March, 2022
Revenue from operations 2,64,852.18 2,16,355.81
Other income 1,434.48 1,681.29

Total Income

2,66,286.66 2,18,037.10
Profit Before Finance Costs and 41,599.84 39,136.20
Finance Costs 5,433.85 4,215.80

Depreciation and Amortisation of expenses

15,914.28 14,450.35

Profit Before Tax

20,251.71 20,470.05
Tax Expense 3,637.96 4,854.83

Profit for the Year(excluding other comprehensive income)

16,613.75 15,615.22

Note: All financial numbers for Continued Operations Goods Transportation

On an year on year basis, the revenue from Goods Transportation operations increased by 22.42% from Rs 2,16,355.81 lakhs to Rs 2,64,852.18 lakhs. Including other income the total revenue increased by 22.13% from Rs 2,18,037.10 lakhs to Rs 2,66,286.66 lakhs.

The improvement in turnover is on account of growth in Good Transport segment which is major segment in our operation. We believe that the growth in our core Goods Transport segment was amply aided by the pro-active decisions taken by the management. The change in strategies post covid not only helped in expanding our clientele base but also helped in garnering a large chunk of market share of the shift to the compliance efficient organized business houses, from risky unorganized logistics service providers. The company has added significant fleet capacity and also during the year which also resulted in such growth becoming possible.

The increase in revenue is mainly on account of increase in tonnage to 39 lakh tons from 32 lakh tons with a growth of 21%. The companys average daily tonnage had reached 11400 tons in Q4 FY23.

During the year the realization per ton increased by 1.30%. To achieve better growth in tonnage and to capture the new markets, during the year your company did not increase the freight rates. A small growth in the rates was effected from mid-December 2022, only for the non-contractual customers. In fact, considering the further expansion in branch network during Q4 and offering competitive rates to enable Return Loads on newer routes we offered discounts on selective basis.

We laid emphasis on expanding our network as is evident from addition of 184 new branches in FY23. Going further, we plan to open more number of branches in the untapped markets. The new branches contributed over 5% to the tonnage and the same is only expected to increase in the days to come. Our strategy of expansion of branch network is going to continue and we plan to add around 25 - 30 branches every quarter, especially in untapped markets. The below graph depicts the increase in number of branches from FY 2021-22 to FY 2022-23.

On the fleet side, we added 1338 vehicles of different share and also reduce dependency on third party vehicles. Net addition post scrappage was 855 Vehicles. The below chart illustrates the capacity wise breakup of our vehicles as on 31.03.2023

Capacity Breakup as on Mar 31, 2023

We believe the steps taken by the Government clearly indicates that the business transactions needs to be done in a complied and organized way rather that the non-complied manner which were or being supported by the unorganized transporters while transportation of the Goods.

We have seen significant growth in the movement of some of the commodities in the last few years dependent on unorganized small fleet operators earlier. For example, Agricultural Products and Equipments, Automobile, Educational Goods, Clothes & Textiles, FMCG , Industrial Goods , Footwear, Metals & Hardware etc.


In absolute terms EBITDA of the company increased by 6.3% from Rs 39136.2 lakhs to Rs 41599.84 lakhs. However, when expressed as a percentage to the total income for the year, the EBIDTA margin decreased by 2.33% from 17.95% to 15.62% in FY 23.

EBIT of the company increased by 4.05% from Rs 24,685.85 lakhs to Rs 25,685.56 lakhs. When expressed as a percentage of total income, the same decreased by 1.68% from 11.32% to 9.65%.

Deprecation increased by 10.13% from Rs14,450.35 lakhs to Rs15,914.28 lakhs.

PBT decreased by 1.07% from Rs20,470.05 lakhs to Rs 20,251.71 lakhs. When expressed as a percentage of total income, the same decreased by 1.78% from 9.39% to 7.61%.

Interest expense increased by 28.89% from Rs 4,215.80 lakhs to Rs 5,433.85 lakhs.

Profit after tax of the company increased by 6.39% fromRs 15,615.22 lakhs to Rs 16,613.75 lakhs. When expressed as a percentage to total income it decreased by 0.92% from 7.16% to 6.24%.

Dividend - The Board of Directors have recommended a dividend of Rs 5 per equity share of INR 10 each, in their meeting held on 20 May 2023, which is subject to the approval of the shareholders at the ensuing Annual General Meeting.

Goods Transport (GT)

Increase in volume and better realization leads to 22% growth in revenue

Strategic Planning

Geographical Expansion (Contribution from new branches)

A Strong Revival in Economy which helped in a growing demand from MSME and Corporates.

Addition of new customers. Business shift from unorganized to organized fleet operators due to GST, E-way Bill & E-invoicing reforms

Operational Efficiencies

Increased contribution from newer commodities.

GT revenue increased by 22% from Rs 2,18,037.10 lacs to Rs 2,66,286.66 lacs.

Tonnage increased by 21% while realization per ton increase by 1.3%. The increase in tonnage is on account of addition of new customers in the existing branches, expansion in network by opening of new branches in untapped market, focusing on geographic product-wise marketing and shifting of customers from the unorganized transport service providers to organized service providers on account of reforms in GST and E-way bill compliance norms.

We are hoping that considering our focus to increase our network going forward to the untapped market by opening of new branches and the shifting of customers from unorganised players to organised players (who are contributing major share in the Indian Transport Industry) our growth pattern will continue even going forward. Please refer the below notes in relation to elements of operating cost:

- Due to withdrawal of subsidy on Bulk Purchase of diesel from Feb-22 to Dec-22, there was an increase in fuel procurement price in the current financial year. The company was unable to purchase fuel directly from the refineries which in earlier years had a cost advantage of ~ Rs 2 per litre in bulk purchase, when compared with retail price. Bulk purchase of fuel restarted from mid Dec-22 and direct procurement from refineriesincreased to 28% in Q4 FY 23 as compared to 5% in Q3FY23. The average procurement cost of the Diesel increased from Rs 87.22 in FY22 to Rs90.22 in FY23. With this the Fuel cost as a % to revenue increased from 29.67% to 30.43% and impacted on EBITDA margin by 0.76%.

- Lorry Hire charges also increased as a percentage to the revenue from 7.41% to 9.29% due to increase in KMs by Hired Vehicles, increase in lorry hire charges per KM and increase in charges for last mile collections and deliveries. Overall own vehicle capacity increased by 16% from 71056 tons to 82657 tons, while our tonnage increased by 21% from 32 lakhs tons to 39 lakhs tons to meet this gap we were dependent on hired vehicles.

- The increase in toll charges sharply impacted on EBITDA during the year. The toll charges as a percentage to revenue increased from 6.16% to 7.28% and impacted on EBITDA by 1.12%. The increase in toll charges is on account of increase toll plazas across the country these numbers were around 850 at the beginning of the year now increases to around 1200. Further the toll rates also increased almost by 5%.

- The Loading and Unloading charges increased by 0.38% from 5.94% to 6.31% due to increase in hamali rates at various places On the other side certain expenses have decreased during the year and supported increase in EBITDA margin as under:

- The Vehicle repairs and maintenance costs is decreased by 0.66% from 7.07% to 6.41% on account of low maintenance costs on the New vehicles and also the KMs covered by the new vehicles increased on YOY basis.

- The Tyre costs also reduced as a % to the revenue by 0.46% due to increase in KMs covered by the New Vehicles which have been supplied with pre-fitted tyres.

- Employee costs which is the major fixed cost in our operations decreased by 0.33% from 15.91% to 15.58%. This is evident that the increase in tonnage always supports to have better control on the fixed costs and the same manpower can handle additional volumes.

- The EBIT margin is reduced by 1.68% from 11.32% to 9.65% on account of decline in EBITDA margins.

Since we are expanding our Network and also adding many new customers we expect that the volume growth will continue in the coming quarters. Further as we are having the best method of operations with our own infrastructure facilities we can have better control on key expenses such as Diesel costs etc. and maintain the profitability margins.


As at March 31, 2023

As at March 31, 2022

Change %

Reason for more than 25% change

Current Ratio




Due to increase in Leased premises security deposits which is forming part of current assets in the current year on account of expansion in leased premises related to Transhipment hubs and opened considerable number of branch offices in leased premises

Debt - equity Ratio




Due to increase in Equity on account of increase in profit for the year from continued operations, discontinued operations, exceptional profit from Sale of Wind Power business and Sale of Bus operations business. Further usage of cash flows from operating activities before working capital changes, substantial cash flow from investment activities on account of Sale of Wind Power business and Sale of Bus operations business after the Capital Expenditure, for repayment of debts.

Debt Service Coverage Ratio




Increase in borrowings due to considerable capex and increase in lease liabilities due to increase in lease premises for expansion of Transhipment hub areas and increase in number of branches.

Return on Equity




Due to increase in Returns on account of increase in profit for the year from continued operations, discontinued operations, exceptional profit from Sale of Wind Power business and Sale of Bus operations business.

Trade Receivables turnover ratio




Growth in business as compared to previous financial year.

Trade payables turnover ratio




Due to decrease in Net Credit purchases.

Net capital turnover ratio




Due to substantial growth in Sales from continued operations in comparison to proportionate increase in working capital.

Net Profit Ratio




Decrease in EBITDA margins due to increase in fuel cost, lorry hire charges and bridge & toll charges as a percentage to the Sales resulted into decrease in Net profit margins as compared to the previous year.

Return on Capital employed




This ratio improved due to increase in profit for the year and exceptional profits in the current year on account of Sale of Bus business operations and Wind Power business operations.

Return on Invest- ment




Decrease in Returns is on account of the date of acquisition of deposits in the current year are on later dates during the financial year


The total employee strength of the Company as of 31.03.2023 was20219.Giventhenatureofoperations,significantportion of the said employee strength comprises of drivers, cleaners, garage mechanics and other unskilled employees. Despite the large number of employees as also considering the widespread geographical operation of the Company, your management feels proud to state that the employer – employee relations remained extremely cordial throughout the year. There were no instances of strikes, lockouts or any other action on part of the employees that affected the functioning of the Company. It is noteworthy that there is no Employee Union / Trade Union / Union within the organization.