VRL LOGISTICS 2022-23 Annual Report Analysis

Wed, 12 Jul

VRL LOGISTICS has announced its results for the year ended March 2023. Let us have a look at the detailed performance review of the company during FY22-23.

VRL LOGISTICS Income Statement Analysis

• Operating income during the year rose 10.6% on a year-on-year (YoY) basis.
• The company's operating profit decreased by 0.6% YoY during the fiscal. Operating profit margins witnessed a fall and stood at 15.2% in FY23 as against 16.9% in FY22.
• Depreciation charges decreased by 5.3% and finance costs increased by 26.3% YoY, respectively.
• Other income declined by 11.5% YoY.
• Net profit for the year grew by 3.8% YoY.
• Net profit margins during the year declined from 6.7% in FY22 to 6.3% in FY23.

VRL LOGISTICS Income Statement 2022-23

No. of Mths Year Ending		12 Mar-22*	12 Mar-23*	% Change
Net Sales	Rs m	23,937	26,485	10.6%
Other income	Rs m	168	149	-11.5%
Total Revenues	Rs m	24,105	26,634	10.5%
Gross profit	Rs m	4,056	4,030	-0.6%
Depreciation	Rs m	1,680	1,591	-5.3%
Interest	Rs m	445	562	26.3%
Profit before tax	Rs m	2,099	2,025	-3.5%
Tax	Rs m	498	364	-26.9%
Profit after tax	Rs m	1,601	1,661	3.8%
Gross profit margin	%	16.9	15.2
Effective tax rate	%	23.7	18.0
Net profit margin	%	6.7	6.3

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VRL LOGISTICS Balance Sheet Analysis

• The company's current liabilities during FY23 stood at Rs 3 billion as compared to Rs 3 billion in FY22, thereby witnessing an increase of 15.5%.
• Long-term debt stood at Rs 1 billion as compared to Rs 814 million during FY22, a growth of 31.8%.
• Current assets rose 63% and stood at Rs 3 billion, while fixed assets rose 33% and stood at Rs 16 billion in FY23.
• Overall, the total assets and liabilities for FY23 stood at Rs 19 billion as against Rs 14 billion during FY22, thereby witnessing a growth of 37%.

VRL LOGISTICS Balance Sheet as on March 2023

No. of Mths Year Ending		12 Mar-22*	12 Mar-23*	% Change
Networth	Rs m	6,516	9,758	49.8
Current Liabilities	Rs m	2,652	3,062	15.5
Long-term Debt	Rs m	814	1,073	31.8
Total Liabilities	Rs m	13,803	18,917	37.1
Current assets	Rs m	1,711	2,789	63.0
Fixed Assets	Rs m	12,092	16,129	33.4
Total Assets	Rs m	13,803	18,917	37.1

VRL LOGISTICS Cash Flow Statement Analysis

• VRL LOGISTICS's cash flow from operating activities (CFO) during FY23 stood at Rs 3 billion on a YoY basis.
• Cash flow from investing activities (CFI) during FY23 stood at Rs -1 billion on a YoY basis.
• Cash flow from financial activities (CFF) during FY23 stood at Rs -2 billion, an improvement of 12% on a YoY basis.
• Overall, net cash flows for the company during FY23 stood at Rs 30 million from the Rs -47 million net cash flows seen during FY22.

VRL LOGISTICS Cash Flow Statement 2022-23

Particulars	No. of months	12	12	% Change
	Year Ending	Mar-22	Mar-23
Cash Flow from Operating Activities	Rs m	3,708	3,183	-14.1%
Cash Flow from Investing Activities	Rs m	-1,801	-1,445	-
Cash Flow from Financing Activities	Rs m	-1,953	-1,709	-
Net Cash Flow	Rs m	-47	30	-

Current Valuations for VRL LOGISTICS

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 18.8, an improvement from the EPS of Rs 18.1 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 714.3, stands at 17.0 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 6.4 times, while the price to sales ratio stands at 2.4 times.
• The company's price to cash flow (P/CF) ratio stood at 16.2 times its end-of-year operating cash flow earnings.

Per Share Data/Valuations

No. of Mths Year Ending		12 Mar-22*	12 Mar-23*
Sales per share (Unadj.)	Rs	271.0	299.8
TTM Earnings per share	Rs	18.1	18.8
Diluted earnings per share	Rs	18.3	19.0
Price to Cash Flow	x	13.2	16.2
TTM P/E ratio	x	28.4	17.0
Price / Book Value ratio	x	5.4	5.4
Market Cap	Rs m	35,033	52,571
Dividends per share (Unadj.)	Rs	8.0	5.0

Ratio Analysis for VRL LOGISTICS

• Solvency Ratios

Current Ratio: The company's current ratio improved and stood at 0.9x during FY23, from 0.6x during FY22. 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 deteriorated and stood at 4.6x during FY23, from 5.7x during FY22. 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 declined and down at 17.0% during FY23, from 24.6% during FY23. 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 declined and down at 23.9% during FY23, from 34.7% during FY22. 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 declined and down at 11.8% during FY23, from 14.8% during FY22. The ROA measures how efficiently the company uses its assets to generate earnings.

Key Ratio Analysis

No. of Mths Year Ending		12 Mar-22*	12 Mar-23*
Current ratio	x	0.6	0.9
Debtors’ Days	Days	103	113
Interest coverage	x	5.7	4.6
Debt to equity ratio	x	0.1	0.1
Return on assets	%	14.8	11.8
Return on equity	%	24.6	17.0
Return on capital employed	%	34.7	23.9

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 653.4 to Rs 714.3, registering a gain of Rs 61.0 or around 9.3%.

Overall, the S&P BSE SENSEX is up 20.5% over the year.

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