Logistics stock jumps 12% after reporting 236% net profit growth; Declares dividend

This VRL Group Stock is in focus as it reported its Q4 FY25 results with robust Net Profit growth of 236.36 percent , and the board also recommended a 100 percent dividend. Following the results, the share surged by 12.60 percent.

With a market capitalisation of Rs. 5,465 Crore, the stock of VRL Logistics opened at Rs. 601, up 7.38 percent from yesterday’s close, and after opening, it made a high of Rs. 630.25, up 12.60 percent. Additionally, the Yearly return for the stock is 6 percent, and the past 5-year return is an impressive 317 percent.

Financial Highlights & Dividend Recommendation

The company reported a 5.33 percent YoY increase in revenue from Rs. 768 Crore in Q4FY24 to Rs. 809 Crore in Q4FY25. On a QoQ basis, the company reported a decrease of 1.93 percent in revenue from Rs. 825 Crore in the previous quarter.

Their Net profit saw an increase of 236.36 percent YoY from Rs. 22 Crore to Rs. 74 Crore for the same period. On a QoQ basis, the company reported an increase of 25.42 percent in Net profit from Rs. 59 Crore in the previous quarter.

The sharp surge in Net Profits on a YoY basis can be attributed to the strong operating leverage that was driven by higher revenue and lower operating costs. Operating leverage refers to the degree to which a company can increase its profit by increasing revenue, due to the presence of fixed costs in its cost structure. 

The Board recommended a final dividend of Rs. 10 per share, or 100 percent based on the face value of Rs. 10 per share. The dividend will be subject to approval of shareholders at the Annual General Meeting (AGM).

About the Company

Founded in 1976 by Vijay Sankeshwar & headquartered in Hubballi, Karnataka. VRL Logistics Limited is one of India’s leading logistics and transportation companies.  Its core services include goods transportation (both Less Than Truck Load and Full Truck Load), courier services primarily within Karnataka, and passenger transport under the brand “Vijayanand Travels.

The company also offers specialised services like car and liquid transportation. Apart from logistics, VRL has diversified into media by publishing the popular Kannada daily newspaper, Vijayavani. 

Written By Abhishek Das  

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