I take pleasure in presenting the 31st Annual Report of the Company.
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
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
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
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
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.
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.
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
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.
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.
Dr. Vijay Sankeshwar
Chairman & Managing Director