VRL LOGISTICS 2021-22 Annual Report Analysis

Wed, 20 Jul

VRL LOGISTICS has announced its results for the year ended March 2022. Let us have a look at the detailed performance review of the company during FY21-22.

VRL LOGISTICS Income Statement Analysis

• Operating income during the year rose 35.8% on a year-on-year (YoY) basis.
• The company's operating profit increased by 63.5% YoY during the fiscal. Operating profit margins witnessed a fall and down at 16.9% in FY22 as against 14.1% in FY21.
• Depreciation charges increased by 5.1% and finance costs increased by 19.0% YoY, respectively.
• Other income grew by 30.7% YoY.
• Net profit for the year grew by 255.3% YoY.
• Net profit margins during the year grew from 2.6% in FY21 to 6.7% in FY22.

VRL LOGISTICS Income Statement 2021-22

No. of Mths Year Ending		12 Mar-21*	12 Mar-22*	% Change
Net Sales	Rs m	17,629	23,937	35.8%
Other income	Rs m	129	168	30.7%
Total Revenues	Rs m	17,758	24,105	35.7%
Gross profit	Rs m	2,481	4,056	63.5%
Depreciation	Rs m	1,598	1,680	5.1%
Interest	Rs m	374	445	19.0%
Profit before tax	Rs m	637	2,099	229.3%
Tax	Rs m	187	498	166.6%
Profit after tax	Rs m	451	1,601	255.3%
Gross profit margin	%	14.1	16.9
Effective tax rate	%	29.3	23.7
Net profit margin	%	2.6	6.7

Download Now: Exclusive Guide About India's Potentially Decade-Long $10 Trillion Bull Run...

VRL LOGISTICS Balance Sheet Analysis

• The company's current liabilities during FY22 stood at Rs 3 billion as compared to Rs 3 billion in FY21, thereby witnessing an increase of 2.6%.
• Long-term debt stood at Rs 814 million as compared to Rs 395 million during FY21, a growth of 106.2%.
• Current assets fell 3% and stood at Rs 2 billion, while fixed assets rose 18% and stood at Rs 12 billion in FY22.
• Overall, the total assets and liabilities for FY22 stood at Rs 14 billion as against Rs 12 billion during FY21, thereby witnessing a growth of 15%.

VRL LOGISTICS Balance Sheet as on March 2022

No. of Mths Year Ending		12 Mar-21*	12 Mar-22*	% Change
Networth	Rs m	5,971	6,516	9.1
Current Liabilities	Rs m	2,586	2,652	2.6
Long-term Debt	Rs m	395	814	106.2
Total Liabilities	Rs m	11,986	13,803	15.2
Current assets	Rs m	1,767	1,711	-3.2
Fixed Assets	Rs m	10,219	12,092	18.3
Total Assets	Rs m	11,986	13,803	15.2

VRL LOGISTICS Cash Flow Statement Analysis

• VRL LOGISTICS's cash flow from operating activities (CFO) during FY22 stood at Rs 4 billion, an improvement of 36.5% on a YoY basis.
• Cash flow from investing activities (CFI) during FY22 stood at Rs -2 billion, an improvement of 471.7% on a YoY basis.
• Cash flow from financial activities (CFF) during FY22 stood at Rs -2 billion, an improvement of 17% on a YoY basis.
• Overall, net cash flows for the company during FY22 stood at Rs -47 million from the Rs 58 million net cash flows seen during FY21.

VRL LOGISTICS Cash Flow Statement 2021-22

Particulars	No. of months	12	12	% Change
	Year Ending	Mar-21	Mar-22
Cash Flow from Operating Activities	Rs m	2,716	3,708	36.5%
Cash Flow from Investing Activities	Rs m	-315	-1,801	-
Cash Flow from Financing Activities	Rs m	-2,344	-1,953	-
Net Cash Flow	Rs m	58	-47	-

Current Valuations for VRL LOGISTICS

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 18.1, an improvement from the EPS of Rs 5.1 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 705.0, stands at 38.9 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 9.6 times, while the price to sales ratio stands at 2.6 times.
• The company's price to cash flow (P/CF) ratio stood at 10.7 times its end-of-year operating cash flow earnings.

Per Share Data/Valuations

No. of Mths Year Ending		12 Mar-21*	12 Mar-22*
Sales per share (Unadj.)	Rs	199.6	271.0
TTM Earnings per share	Rs	5.1	18.1
Diluted earnings per share	Rs	5.1	18.1
Price to Cash Flow	x	9.9	10.7
TTM P/E ratio	x	45.2	38.9
Price / Book Value ratio	x	3.0	5.4
Market Cap	Rs m	18,060	35,033
Dividends per share (Unadj.)	Rs	4.0	8.0

Ratio Analysis for VRL LOGISTICS

• Solvency Ratios

Current Ratio: The company's current ratio deteriorated and stood at 0.6x during FY22, from 0.7x during FY21. The current ratio measures the company's ability to pay short-term and long-term obligations.

Interest Coverage Ratio: The company's interest coverage ratio improved and stood at 5.7x during FY22, from 2.7x during FY21. The interest coverage ratio of a company states how easily a company can pay its interest expense on outstanding debt. A higher ratio is preferable.

• Profitability Ratios

Return on Equity (ROE): The ROE for the company improved and stood at 24.6% during FY22, from 7.5% during FY22. The ROE measures the ability of a firm to generate profits from its shareholders capital in the company.

Return on Capital Employed (ROCE): The ROCE for the company improved and stood at 34.7% during FY22, from 15.9% during FY21. The ROCE measures the ability of a firm to generate profits from its total capital (shareholder capital plus debt capital) employed in the company.

Return on Assets (ROA): The ROA of the company improved and stood at 14.8% during FY22, from 6.9% during FY21. The ROA measures how efficiently the company uses its assets to generate earnings.

Key Ratio Analysis

No. of Mths Year Ending		12 Mar-21*	12 Mar-22*
Current ratio	x	0.7	0.6
Debtors’ Days	Days	132	103
Interest coverage	x	2.7	5.7
Debt to equity ratio	x	0.1	0.1
Return on assets	%	6.9	14.8
Return on equity	%	7.5	24.6
Return on capital employed	%	15.9	34.7

To see how VRL LOGISTICS has performed over the last 5 years, please visit here.

VRL LOGISTICS Share Price Performance

Over the last one year, VRL LOGISTICS share price has moved up from Rs 297.0 to Rs 705.0, registering a gain of Rs 408.0 or around 137.4%.

Overall, the S&P BSE SENSEX is up 5.7% over the year.

(To know more, check out historical annual results for VRL LOGISTICS and quarterly results for VRL LOGISTICS)

Read: Latest Annual Report Analysis of VRL LOGISTICS