VRL Logistics Shares traded at ₹559 per share with a volume of 8 Lakh shares trading on the NSE and BSE, a 20% rise was seen in the morning session of February 6, 2025.
Key Financial Highlights for Q3FY25:
- Revenue: ₹830 crore, up 12% YoY.
- EBITDA: ₹172 crore, up 78% YoY.
- EBITDA Margin: Expanded by 800 basis points YoY to 21%.
- Net Profit: ₹59 crore, a remarkable 4x increase YoY.
Operational Highlights
Margin Expansion:
- Driven by freight rate hikes, resulting in better realizations across all sectors and geographies.
- Route optimization significantly reduced transhipment dependencies, enhancing overall efficiency.
- Improved load factors and mileage for company-owned vehicles further boosted utilization.
Branch Network Growth:
- 39 net branches were added in 9MFY25, increasing the total from 1,209 to 1,248.
- Opened 64 new branches while closing 25 inefficient locations to optimize operations.
Capital Expenditure (Capex):
- Q3FY25 Capex: ₹276.05 crore.
- 9MFY25 Capex: ₹395.46 crore.
- Investments focused on property acquisitions in Bengaluru, Mysuru, and Mangaluru to support long-term growth.
Stock Performance
The rally pushed the stock price to ₹559, marking a 20% jump in a single session. However, the stock has been largely stagnant over the last three months, slipping 3%, underperforming the Nifty 50's 1% decline.
Credit Rating
VRL Logistics' creditworthiness remains strong. Its ICRA rating of A+ (Positive) reflects stability and sound financial management.
Challenges and Outlook
Despite the strong quarterly performance, the stock's stagnation over the past three months indicates that sustained growth will require continued operational excellence and a recovery in broader market sentiment. However, the company's 800 basis points margin improvement and focused growth strategy position it well for potential future gains.
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