Subdued demand in Southern states impact tonnage growth; volumes expected to improve in FY25

Company
11 Mar 2024
5 Min read 
  • VRL Logistics reported 8% YoY revenue growth in 3QFY24, driven by a 8% YoY increase in volumes.
  •  The company's EBITDA margins stood at 12.8%, lower than expected due to higher employee costs.
  •  APAT declined 64% YoY to INR 137m, impacted by weak operating performance and higher expenses.
  •  VRL expects tonnage growth of 15% in FY25 as demand picks up and plans to increase prices post general elections.
  •  FY24/FY25/FY26 EPS estimates have been cut by ~30%/18/11% due to lower volume growth and margins.
  •  The company plans to expand its branch network and expects a tonnage growth rate of 8-10% in 4QFY24 and FY24.
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