VRL Logistics shares fell as much as 6.89 percent, reaching an intraday low of Rs 530.65 a share. However, at 1:44 PM, VRL Logistics' shares were trading 2.89 percent down at Rs 553.50 a share. In comparison, the BSE Sensex was trading 2.62% down at 78,860.34. The share price fell in response to dismal June quarter results for fiscal year 2025 (Q1FY25).
The company's net profit fell approximately 61% year on year (Y-o-Y) to Rs 13.4 crore in the June quarter of FY25, from Rs 34 crore in the June quarter of FY24. However, its top line, or income from operations, increased by 8% year on year to Rs 727.2 crore in Q1FY25, up from Rs 674.2 crore in Q1 FY24.
At the operational level, earnings before interest, tax, depreciation, and amortization (Ebitda) declined 15% yearly to Rs 87 crore in the June quarter of FY25, down from Rs 102 crore in the June quarter of FY24. As a result, EBITDA margin, also known as Operating Profit Margin (OPM), fell 300 basis points (bps) to 12 percent in Q1FY25 from 15 percent in Q1FY24.
VRL Logistics specializes in domestic products transportation and provides a variety of services such as bus operations, passenger air transport, power sales, and the trade of Certified Carbon Reductions (CERs) from wind energy. With activities spanning over many branches and transshipment hubs, the organization is a prominent participant in the logistics sector.
Notably, VRL Logistics is the only major operator in the Less-than-Truckload (LTL) category, which caters to shipments that do not require a whole truckload. VRL Logistics, known for its surface transportation skills, also leads the industry in parcel delivery.
The corporation owns the largest fleet in the sector. In FY24, VRL operated 5,994 owned vehicles with a total carrying capacity of 86,405 tonnes, up from 4,800 vehicles and 71,056 tonnes in FY22. VRL also has 216 trailers capable of carrying a total of 5,433 tons.
VRL runs 1,209 branches in 24 Indian states and 5 Union Territories as of FY24, up from roughly 950 in FY22. The organization has 50 strategically placed hubs and uses a hub-and-spoke strategy to maximize truck capacity utilization. VRL Logistics' market capitalization is Rs 4,841.38 crore, according to the Bombay Stock Exchange (BSE).
