VRL Logistics Q4 Review- Subdued Growth In Southern Market Impact Tonnage Growth In FY24: Motilal Oswal

Motilal Oswal Report

VRL Logistics Ltd.’s Q4 FY24 revenue grew 10% YoY/4% QoQ to ~Rs 7.7 billion (in line with our estimate). Volumes increased ~10% YoY to 1.13 million tons in Q4 FY24. The sluggish demand in Southern States affected volume growth during the quarter. Realisation per tonne stood at Rs 6,724 (+1% YoY and QoQ).

Ebitda margins stood at 13.7%, against our estimate of 13.3%. Lower volumes and higher employee costs adversely impacted the margins. Further, increased costs have not been passed on to customers, leading to pressure on Ebitda margins. Ebitda stood at Rs 1.05 billion (in line with our estimate).

Adjusted profit after tax declined 65% YoY to Rs 215 million (in line with our estimate of Rs 218 million). Weak operating performance, higher depreciation, interest expense, and lower other income dragged APAT.  During FY24, revenues grew 9% YoY to Rs 28.9 billion. Ebitda margins stood at 13.6%. APAT reported a 47% YoY decline to Rs 886 million. Volumes increased 9% YoY to 4.2m tons in FY24, while realisation per ton stood at Rs 6,676 (+1% YoY).

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