Small cap stock announces share buyback of ₹61 cr at a premium of 34%

The company said in a stock exchange filing today that “We inform you that the Board of Directors of VRL Logistics Limited (the “Company”) at its meeting held today i.e. January 30, 2023, has approved the proposal to buy back 8,75,000 fully paid-up equity shares of face value Rs. 10 (Rupees Ten only) each (“Equity Shares” or “Shares”) representing up to 0.99% of the total number of Equity Shares in the paid-up equity share capital of the Company, at a cost of Rs. 700/- (Rupees Seven Hundred only) per Equity Share (“Buyback Price”) payable in cash subject to a maximum amount of 61,25,00,000/- (Rupees Sixty One Crore Twenty Five Lakh Only) (“Buyback Size”), as on latest, representing an aggregate of 9.44% of the fully paid-up Equity Share Capital and Free Reserves of the Company. Audited Financial Statements of the Company for the financial year ended 31st March, 2022.”

VRL Logistics has said that it proposes to undertake buyback from the equity shareholders of the company on the record date i.e. February 10, 2023.

In Q3FY23, the company reported a net income of 773.33 crore against 683.29 Cr in Q3FY22, representing a YoY growth of 13.3%. The company posted Profit Before Tax (PBT) 65.90 crore in the quarter ending December 2022 as compared to 77.73 crore was recorded in the quarter ending December 2021, registering a decline of 15.2%. The company recorded a net profit of As compared to 49.20 Cr in Q3FY23 60.48 Cr reported over the year-ago quarter, representing a loss of 18.7% YoY.

VRL Logistics said in a report that “the company has entered into a business transfer agreement with a promoter group company ‘Vijayanand Travels Pvt Ltd’ for sale/transfer of its Bus Operations Business Undertaking (Bus Operations) during the current quarter.” Going by Slump Sales for Total Sales Considerations 23000 Lakhs based on the Board of Directors meeting held on 15th September 2022 and approval received from its shareholders on 31st October 2022. the company has received an advance 22500 lacs from the buyer against the above sale consideration. Approval from the relevant regulatory authorities for the sale transaction has been obtained on January 25, 2023 and hence, profit before tax 17690 lakhs (net of expenses incurred till 31 December 2022) on this sale. 11 lakh), have not been given effect to in these financial results.

“The Company, during the previous quarter, had executed a business transfer agreement for sale/transfer of its wind energy business venture (sales of power) on slump sale basis for the total sale consideration. 5285 lakhs. Approval from the relevant regulatory authorities for the sale transaction has been obtained on January 10, 2023 and hence, profit before tax 1034 lakhs (net of expenses incurred till 31st December 2022) on this sale. 6 lakh), have not been given effect to in these financial results,” the board of directors of VRL Logistics said in a statement.

127 new branches were added in 9MFY23. The firm has opened 68 new branches in Q1FY23, 29 new branches in Q2FY23 and 30 new branches in Q3FY23. The company said it increased branch coverage and expanded its existing branch areas in key markets such as Pune, Ahmedabad, Raipur, Salem, Chennai, Kanpur, Delhi, Kolkata, Patna, Guwahati, Siliguri and Cuttack.

VRL Logistics Ltd share closed today on NSE down 0.74% from its previous close of 522.00 525.90.