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VRL Logistics Ltd.

BSE: 539118 | NSE: VRLLOG |

Represents Equity.Intra - day transactions are permissible and normal trading is done in this category
Series: EQ | ISIN: INE366I01010 | SECTOR: Transport & Logistics

BSE Live

Sep 17, 16:00
344.30 -0.65 (-0.19%)
Volume
AVERAGE VOLUME
5-Day
13,531
10-Day
17,793
30-Day
20,543
8,657
  • Prev. Close

    344.95

  • Open Price

    343.85

  • Bid Price (Qty.)

    344.30 (50)

  • Offer Price (Qty.)

    344.30 (5)

NSE Live

Sep 17, 15:58
344.05 -3.20 (-0.92%)
Volume
AVERAGE VOLUME
5-Day
225,143
10-Day
256,768
30-Day
304,769
213,184
  • Prev. Close

    347.25

  • Open Price

    346.05

  • Bid Price (Qty.)

    344.05 (96)

  • Offer Price (Qty.)

    0.00 (0)

Annual Report

For Year :
2018 2017 2016 2015 2014

Chairman's Speech

Dear Shareholders, I take pleasure in presenting the 31st Annual Report of the Company. Performance We have crossed the revenue figure of Rs.1500 crores (Rs.15 billion) during the year, thus recording a commendable growth rate of 12.61% when India''s growth rate is below 5%. Profit before Tax is Rs.76.76 crores as compared to Rs.63.58 crores in the previous year. However, considering the deferred tax reversal on account of commencement of tax holiday period for the windmill division, the profit after tax is significantly lower at Rs.57.01 crores vis-a-vis Rs.80.29 crores for the earlier year. Our financial performance during the year is the best in the peer group. Last year input costs went up. The market is experiencing a severe cash crunch. The manufacturing segment and retailers who are our customer base are losing out on account of a decline in turnover. Despite this, we have bettered our performance. This speaks volumes for our effective management. I have been a part of VRL''s growth since its inception and firmly believe that business growth should never be achieved by taking undue risks, especially credit risk. Your Company has always been selective in accepting new business on credit terms and does have a very robust internal mechanism to ensure that dues get collected and the Company does not have to resort to any material compromise in any manner. In comparison to industry players, VRLs receivables are much lower and we would ensure that these good practices continue to be sustained in the organization even if it would result in lower revenue growth. During the year, your management has taken a very stringent view of receivables and has clearly earmarked this as a focus area for the ensuing fiscal. VRL has already terminated its association with clients who did not discharge their payment obligations on time and has chosen to discontinue business with them. VRL has the lowest quantum of debtors in the whole industry. The Passenger Division operations were satisfactory during the year with the introduction of lot of new routes. During the year, the Company commenced operations at Jalore, Binmal, Padukone, Athani, Mysore and several other destinations for the first time. Depending on the flow of business, a few routes have been discontinued but a majority of these continue to operate. VRL commenced Bangalore-Jodhpur daily service, which today represents the longest route catered to by a private bus operator in India. It is also noteworthy that several key long routes operated by this division such as Bangalore-Ahmedabad, Bangalore-Jodhpur and the like continue to operate at near full occupancy. The said division recorded total revenues of Rs.309.13 crores as against a corresponding figure of Rs. 284.84 crores for the earlier fiscal. The Windmill Division is performing steadily. The European Union is in turmoil, yet we could earn Rs.6.3 crores from selling Carbon Credit to EU through the Asian Development Bank. The Courier and Air Chartering Divisions are steadily improving their performance. The Courier Division clocked revenues of Rs.5.31 crores and this division earns revenue that complements the bus operations and goods transport divisions. The management would continue to operate this division at a similar level in the near future and would not seek an aggressive growth strategy for this vertical. The Air Chartering Division achieved revenues of Rs 7.75 crores and the Company had to forego the tying up of aircraft for steady charter owing to scheduled maintenance activities and other flying. As such, the management has purchased a second-hand aircraft in the month of June from Force Motors at an attractive price and the addition of the said aircraft would enable the Company to cash in on attractive contracts which had to be hitherto missed owing to capacity constraints. Innovative Management We have invested more money and time in implementing IT. We are all set to roll out new inhouse developed ''integrated ERP''. It has enabled quick reporting, good MIS and brought about transparency. We can see a paradigm shift in the extension of customer centric and customer-sensitive business solutions. IT implementation is the single largest contributor towards effective management. It would be prudent to remember that we are in business principally because the wheel was invented followed by the Industrial and Agricultural revolutions. We now see an IT revolution, and hence it is important to understand that the implementation of in-house Information and Communication Technology has made us the market leader. Awards Our company has received several accolades. To cite a few, we received a certificate of excellence - INC India for excellence in Industry out of 500 selected Industries in the country. We also received Service Provider of the Year -Luxury Coaches from Brand Academy. Road Ahead With the installation of a new government at the centre, every economist is spotting green shoots of economic recovery. Economic growth and our business growth are directly linked. We have a healthy balance sheet, an excellent network and a dedicated team to reap the benefits of recovery. We will continue to innovate and excel. Thank You All this has been possible with the constant support of all stakeholders. I would like to thank each one of you - customers, employees, bankers, shareholders, management team and associates. Sincerely yours, Dr. Vijay Sankeshwar Chairman & Managing Director