VRL Logistics Q3FY20: Revenue remains flat but margin improve

VRL Logistics has declared the results for the quarter ended December 31, 2019. The revenue for the quarter Q3FY20 came in at Rs 557.25 crore as against Rs 551.16 crore in the corresponding quarter last year, registering 1.1 per cent YoY increase.

The EBITDA for the quarter grew by 14.3 per cent YoY to Rs 79.67 crore as against Rs 69.68 crore in the corresponding quarter last year, with a corresponding margin expansion of 165 bps. EBITDA margin for the quarter stood at 14.3 per cent. This margin expansion was aided by decline in major cost i.e. freight, handling and servicing cost by around 2 per cent on YoY basis.

The PAT for the quarter came in at Rs 25.8 crore as against Rs 26.58 crore in the corresponding quarter last year, YoY decline of 2.9 per cent. This was led by higher depreciation and interest expenses.

Looking at the nine months numbers i.e. for 9MFY20, the revenue jumped by 2 per cent YoY to Rs 1620.71 crore while EBITDA grew by 31 per cent YoY to 241.64 crore. Furthermore, the company reported net profit of Rs 87.98 crore, up 23 per cent YoY.

Under Goods transport segment, revenue increased by 4.77 per cent QoQ an increase of 2.81 per cent YoY. EBITDA increased by 3.93 per cent QoQ an increase of 4.99 per cent YoY. Company's bus operations have seen significant revenue growth of 27.05 per cent on QoQ basis but declined by 8.28 per cent on YoY basis.

On the debt front, company has managed to pull down its debt by 25 per cent to Rs 96 crore in Q3FY20. The company is planning to reduce capex to Rs. 50-60 crore in FY20 vs Rs. 212 crore in FY19 as it can cater to the demand with the current capacity.

In today's trading session, the stock made intraday high of Rs 265.55 on the BSE.