The company’s fourth quarter revenue increased by 5.3% to ₹809.03 crore from ₹768.4 crore in the previous year. Its profit after tax increased 244.7% to ₹74.25 crore from ₹21.54 crore in the year-ago period.
Its earnings before interest, taxes depreciation and amortisation (EBITDA) was up 77.2% at ₹186.6 crore from ₹105.33 crore in fourth quarter of the previous fiscal. VRL Logistics’ margin in the March quarter expanded to 23.1% from 13.7% in the year-ago period.
The company said the discontinuation of low-margin business agreements impacted its volume growth.
VRL Logistcs’ volumes declined 11% from the previous year and 9% sequentially. Its realisation increased 18% from FY24 and 7% from the December quarter. The increase in freight rates in the earlier quarter and reduction in lower margin businesses supported the fourth quarter margin, VRL Logistics said.
The company’s fuel purchase cost was lower at ₹84.5 per litre from the previous ₹87.7 per litre. Its bulk purchase from refiners also increased from 31.51% to 41.51% in the previous fiscal.
Going forward, VRL Logistics said it is prioritising volume growth, it will increase freight rates as and when required and will focus on increasing its geographic presence in untapped markets.
Shares of VRL Logistics gained 12.9% to hit an intraday high of ₹631 apiece on Thursday, May 22. The stock was trading 10.2% higher at ₹616 apiece at 11.20 am. It has gained 25.8% in the past month.
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