VRL Logistics , a prominent logistics and transport company in India, has made a significant announcement that is set to benefit its shareholders. The company has declared a 1:1 bonus share issue, a move that will effectively double its paid-up share capital.

Bonus Share Details

Under this bonus issue, shareholders of VRL Logistics will receive one new fully paid-up equity share for every existing share they hold. The company has set August 14 as the record date for this corporate action. Investors holding shares of VRL Logistics on this date will be eligible to receive the bonus shares.

Trading and Capital Structure

The newly issued bonus shares are scheduled to be available for trading on August 19. This corporate action will have a substantial impact on the company's capital structure. VRL Logistics' paid-up share capital is set to double from the current 8.74 crore equity shares to 17.49 crore equity shares. The total value of these shares will amount to Rs 17,493.70 lakh.

Source of Bonus Shares

The company plans to issue these bonus shares by capitalizing its reserves. VRL Logistics has substantial reserves totaling over Rs 99,000 lakh, which include securities premium, general reserves, capital redemption reserve, and retained earnings. The bonus shares will be issued from these reserves.

Company Profile

VRL Logistics operates as a logistics and transport company, specializing in parcel services and last-mile delivery across India. The company's extensive network allows it to provide comprehensive logistics solutions to its clients.

Market Response

Despite the announcement of the bonus issue, which is generally viewed positively by investors, VRL Logistics' shares closed 1.37% lower at Rs 556.00 on the day of the announcement. This slight dip could be due to various market factors and may not necessarily reflect the long-term impact of the bonus issue.

Implications for Shareholders

This bonus issue represents a significant value proposition for existing shareholders. While it doesn't directly increase the monetary value of their holdings, it does increase the number of shares they own. This can potentially lead to increased liquidity in the stock and might make it more accessible to a broader range of investors.

Shareholders should note the important dates:

• Record Date: August 14
• Trading Commencement Date for Bonus Shares: August 19

It's advisable for investors to consult with their financial advisors to understand the implications of this corporate action on their individual investment strategies.

VRL Logistics Limited , a leading logistics company in India, reported a significant increase in net profit for the first quarter, despite facing challenges in volume growth. The company's strategic decisions to focus on profitability have yielded positive results, even as it navigates through a period of industry recalibration.

Financial Highlights

• Net profit surged to Rs. 50.00 crores, up from Rs. 13.00 crores in the same quarter last year, marking a remarkable 285% year-on-year increase.
• Total income grew marginally by 1% year-on-year.
• EBITDA margins remained robust at approximately 21%.
• PAT margins improved to 7%, up from 1.8% in the same quarter last year.

Operational Performance

• Volumes declined by 12% year-on-year due to the company's strategic exit from low-margin contracts and price rationalization implemented in the previous fiscal year.
• Realization per ton improved to Rs. 7,800.00, reflecting the success of the company's pricing strategy.
• The company operates 1,241 branches and 50 transshipment hubs, serving 9 lakh GST registered customers.
• Fleet size stood at 5,949 vehicles, slightly down from 6,177 vehicles in the same period last year.

Cost Management Initiatives

VRL Logistics has implemented several cost control measures to improve profitability:

• Fuel costs reduced from 29% to 25% of total income, aided by improved internal procurement from 33% to 41.5%.
• Lorry hire charges declined from 7% to 4% of total income due to better utilization of owned vehicles.
• Employee costs remained stable at around 18% of total income.

Future Outlook

• Management expects volume normalization from Q3 onwards.
• Anticipates volume growth of 7-8% in the next fiscal year.
• Plans to expand into new markets, particularly in the Northeastern region.
• Investing in technology upgrades and planning new hub investments in Kerala worth Rs. 20.00-25.00 crores.

Management Commentary

Sunil Nalavadi, Chief Financial Officer of VRL Logistics, stated, "VRL Logistics continues to demonstrate resilience and strategic clarity as we navigate a period marked by contract restructuring and broader industry recalibration. Our focus on profitability and operational efficiency has yielded positive results, as evident from our strong margin performance."

He added, "While we have seen a temporary decline in volumes, we are confident that our strategic decisions will position us for sustainable long-term growth. We expect volume normalization from Q3 onwards, supported by positive macro tailwinds, including a strong festive demand cycle and favorable monsoon conditions."

VRL Logistics remains committed to leveraging its extensive network, operational advantages, and technological capabilities to capture additional market share and ensure consistent, reliable service delivery in the evolving logistics landscape.