Ad

Ad

Ad

VRL Logistics Ltd is planning to sell its Bus Operations division.


By Priya SinghUpdated On: 20-Sep-2022 10:52 AM
noOfViews3,084 Views

Follow Us:follow-image
Shareshare-icon

ByPriya SinghPriya Singh |Updated On: 20-Sep-2022 10:52 AM
Share via:

Follow Us:follow-image
noOfViews3,084 Views

The Bus Operations Division earned Rs. 20,483.75 Lakhs in revenue, accounting for 8.50% of the company's total income. The Bus Operations Division had a net worth of Rs. 3,452.09 lakhs as of March 31, 2022, which was 5.30% of the entire net worth of Rs.65

VRL has announced plans to sell its bus division to Vijayanand Travel, a promoter entity, in a slump sale for Rs 230 crore. Non-promoter consent is required for the transaction.

VRL Logistics Limited 5.jpg

According to a regulatory filing, the development will allow VRL to transition to a pure-play player in the goods transportation business.

Ebitda, which stands for Earnings Before Interest, Taxes, Depreciation, and Amortisation, is a metric used to evaluate a company's operating performance and serves as a proxy for the cash flow created by its whole operations.

The company is currently involved in the transportation of commodities and the provision of bus services. This segment's contribution to group revenue and margins has fallen below 10% in the last two years. Even though the cost of gasoline as a proportion of revenue climbed from 37 to 47 per cent between fiscal 2020 FY20 and FY22, the average revenue per passenger fell from Rs 1,000 to Rs 924 in the last two years. "Bus operations margins drag down combined earnings, resulting in weaker Ebitda margins," the company stated in the statement.

Furthermore, 60 of VRL's 277 buses are at least six years old, and 65 per cent are more than nine years old. In essence, the management stated that a new round of capital expenditures would have been required to revitalize this industry.
According to an internal document generated by the company, upon conclusion of the transaction, VRL Logistics will report a considerable profit at the proposed consideration of Rs 230 crore as opposed to a net worth of Rs 35 crore as of FY22.

vrl.webp

VRL is expected to use the sale profits to pay its previously projected Capex of Rs 560 crore, which would be used to increase its truck fleet of 5000 and odd trucks. To take advantage of the Vehicle Scrappage Policy, which requires the disposal of commercial vehicles (CV) that have been in service for more than 15 years, Hubballi-based VRL Logistics said in April that it aims to add approximately 1600 tailored trucks. Around 1200 vehicles will be replaced shortly as it strives to take advantage of the scrappage policy. Karnataka, Maharashtra, Andhra Pradesh, Telangana, and Goa are the states in which the company operates. There are 47 transhipment hubs.

The Board of Directors of VRL Logistics Ltd approved the sale/transfer of its Bus Operations undertaking by way of slump sale on a going concern basis to an entity owned and controlled by the Company's promoters at its meeting on September 15, 2022.

The Bus Operations Division earned Rs. 20,483.75 Lakhs in revenue, accounting for 8.50% of the company's total income. The Bus Operations Division had a net worth of Rs. 3,452.09 lakhs as of March 31, 2022, which was 5.30% of the entire net worth of Rs.65,163.07 lakhs.

News


TPEM and HPCL Join Forces to Expand EV Charging Network Nationwide

TPEM and HPCL Join Forces to Expand EV Charging Network Nationwide

The collaboration aims to make EV charging more accessible and convenient for Tata EV owners nationwide....

27-Mar-24 09:38 AM

Read Full News
Daimler India Commercial Vehicles Achieved Remarkable Growth in 2023

Daimler India Commercial Vehicles Achieved Remarkable Growth in 2023

Daimler India Commercial Vehicles (DICV) saw incredible growth, selling 23,400 trucks and 2,000 buses, beating industry expectations by a huge margin....

27-Mar-24 06:38 AM

Read Full News
New Rules Impacts Free Electricity Scheme Beneficiaries

New Rules Impacts Free Electricity Scheme Beneficiaries

New rules impact the Free Electricity Scheme, requiring farmers to clear outstanding bills for continued benefits, affecting eligibility and registration....

26-Mar-24 12:36 PM

Read Full News
Bihar Government Offers Subsidy of Rs. 50K for Cultivating Amla, Lemon, Bel, and Jackfruit: Here's How Farmers Can Benefit

Bihar Government Offers Subsidy of Rs. 50K for Cultivating Amla, Lemon, Bel, and Jackfruit: Here's How Farmers Can Benefit

Bihar offers a Rs 50,000 subsidy for Amla, Lemon, Bel, and Jackfruit cultivation. Apply online with the required documents for benefits....

26-Mar-24 11:00 AM

Read Full News
Maruti Suzuki India Invests Over Rs 1.99 Crore in Amlgo Labs

Maruti Suzuki India Invests Over Rs 1.99 Crore in Amlgo Labs

With this investment, Maruti Suzuki will now own a stake of more than 6.44% in the startup....

26-Mar-24 10:58 AM

Read Full News
Ashok Leyland Declares Interim Dividend of Rs 4.95 per share for FY 2023-24

Ashok Leyland Declares Interim Dividend of Rs 4.95 per share for FY 2023-24

The interim dividend will be paid on or before April 23, 2024. ...

26-Mar-24 09:47 AM

Read Full News

Ad

Ad

web-imagesweb-images

Registered Office Address

Delente Technologies Pvt. Ltd.

M3M Cosmopolitan, 12th Cosmopolitan,

Golf Course Ext Rd, Sector 66, Gurugram, Haryana

pincode - 122002

Join CMV360

Receive pricing updates, buying tips & more!

Follow Us

facebook
youtube
instagram

COMMERCIAL VEHICLE BUYING BECOMES EASY AT CMV360

CMV360 - is a leading commercial vehicle marketplace. We helps consumers to Buy, Finance, Insure and Service their commercial vehicles.

We bring great transparency on pricing, information and comparison of tractors, trucks, buses and three wheelers.