was up 5 per cent to Rs 315 after the company said that rating agency ICRA
has upgraded the long-term rating of the Company from ICRA
A to ICRA
A+. The outlook on the long term rating is stable.
In the past eight trading days, the stock has rallied 29 per cent after VRL reported 71 per cent year-on-year (YoY) growth in its consolidated net profit at Rs 20.52 crore in March quarter (Q4F19), on back of strong operational performance. Ebitda (earnings before interest, taxes, depreciation and amortization) margin improved to 12.02 per cent from 9.47 per cent in year ago quarter.
Its revenue performance remained subdued with around 5 per cent YoY growth as volumes in its two large businesses Goods Transport (GT; volume in tonnage) and Passenger Transport (PT; number of passengers travelled) improved by mere around 1.5 per cent YoY and around 3 per cent YoY, respectively.
VRL has the largest fleet of owned vehicles in the country, which combined with the captive body-building and maintenance facilities, provides considerable operational synergies.
“Prioritization of owned vehicles, usage of biodiesels, redemption benefits from IOCL, in-house goods vehicle body design facilities and economies of scale in spares procurement provides cost advantages to VRL. In addition, benefits arising from implementation of GST and eway bill are benefiting organized players. Also, partly shifting of the freight markets
towards less-than-truck load on account of accelerated warehouse consolidation places VRL in a sweet spot,” analysts at YES Securities said in company update.
has rallied 10 per cent to Rs 39.40 on the back of two-fold jump in trading volumes. A combined 801,303 shares have changed hands on the counter on the NSE and BSE so far.