VRL Logistics skidded to a net loss of Rs 134.4 crore in the first quarter, a 60% year-on-year decline. The road hauler faced this due to a confluence of headwinds: a driver shortage exacerbated by the elections, a scorching heatwave in the north, and increased costs from hiring temporary staff.
The company had cautioned earlier that it would see a muted Q1 FY25, on the back of driver unavailability due to elections. An analyst update from Nuvama Research revealed at that time that the company expects operations to normalise soon, upon completion of elections.
The operating revenue, meanwhile increased by 8% to Rs 7272.1 crore in Q1 FY25 as against Rs 6742.2 crore IN THE YEAR AGO PERIOD?, partially helped by the increase in freight rates, coupled with other income, including from sale of Property, plant and equipment.
According to an update from Nuvama, VRL's net vehicle additions stood at 183, IS THIS CORRECT? taking the total vehicle count to 7,177 at the end of June 24. The company incurred a capex of Rs 49.6 crore in Q1 FY25 and has slowed down further, given the muted demand environment. Moreover, it expects to undertake a capex of Rs 200 crore in FY25.
Management lowered its volume guidance to 7–8% in FY25 (from 12–15% earlier) on the back of muted demand and operational impact. The management took price hikes of 5–10% across product sectors/geographies, resulting in an improved realisation of 6% on July 24. The anticipation of further price hikes remains low, the Nuvama report added.
As of May this year, the Bombay Stock Exchange listed VRL Logistics operates 5994 owned vehicles, which include a wide range of trucks, trailors, and specialised equipment. It operates out of 1209 branches through 50 transshipment hubs and has a customer base of over 9 lakh people.