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VRL Logistics stock tanks 7% on weak June quarter show; profit tumbles 61%

The fall in the share price came on the back of weak June quarter of financial year 2025 (Q1FY25) results.

Markets, Stock market, sensex, stock market indices

Illustration: Ajay Mohanty

SI Reporter New Delhi

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VRL Logistics in focus: Logistics company VRL Logistics shares dropped as much as 6.89 per cent to hit an intraday low of Rs 530.65 per share. 

However, at 1:44 PM, the shares of VRL Logistics were trading 2.89 per cent lower at Rs 553.50 per share. In comparison, BSE Sensex was trading 2.62 per cent lower at 78,860.34 levels.

The fall in the share price came on the back of weak June quarter of financial year 2025 (Q1FY25) results.

The company net profit slipped nearly 61 per cent 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.
 

Its top line or revenue from operations, however, rose 8 per cent Y-o-Y to Rs 727.2 crore in Q1FY25, from Rs 674.2 crore in Q1FY24. 

At the operational level, earnings before interest, tax, depreciation and amortisation (Ebitda) fell 15 per cent annually to Rs 87 crore in the June quarter of FY25, from Rs 102 crore in the June quarter of FY24.

Consequently, Ebitda margin, also known as operating profit margin (OPM) , squeezed 300 basis points (bps) to 12 per cent in Q1FY25, from 15 per cent in Q1FY24. 

VRL Logistics is engaged in domestic goods transportation and offers a range of services, including bus operations, passenger air transport, power sales, and trading in certified emission reductions (CERs) from wind energy. 

With operations spread nationwide across numerous branches and transshipment hubs, the company stands out as a major player in the logistics sector.

Notably, VRL Logistics is the sole major player in the Less-than-Truckload (LTL) segment, catering to shipments that don't fill an entire truck. Renowned for its surface transportation capabilities, VRL Logistics also leads the industry in parcel delivery.

The company boasts the largest fleet in the industry. In FY24, VRL operated 5,994 owned vehicles with a combined carrying capacity of 86,405 tonnes, up from 4,800 vehicles and 71,056 tonnes in FY22. Additionally, VRL has 216 trailers with a total capacity of 5,433 tonnes.

As of FY24, VRL operates 1,209 branches—up from around 950 in FY22—across 24 states and 5 Union Territories in India. The company has 50 strategically located hubs and employs a hub-and-spoke model to maximise vehicle capacity utilisation.

The market capitalisation of VRL Logistics is Rs 4,841.38 crore, according to Bombay Stock Exchange (BSE). 

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First Published: Aug 05 2024 | 1:59 PM IST

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