Profit

VRL Logistics' Promoters Plan Regional Airline, Shares Crash 20%

 Share
EMAIL
PRINT
COMMENTS
VRL Logistics' Promoters Plan Regional Airline, Shares Crash 20%

Highlights

  1. VRL Logistics promoters want to start an airline in personal capacity
  2. The promoters want to sell a minority stake in VRL Logistics
  3. VRL Logistics also reported a 32% fall in its March quarter profit

VRL Logistics shares crashed 20 per cent on Tuesday, following its promoters' decision to start a regional airline in their personal capacity. 

VRL Logistics promoters - Vijay Sankeshwar and Anand Sankeshwar - on Monday said they plan to incorporate a separate company to start a regional airline for which they would sell a minority stake in VRL Logistics.

"The board members should note that we may seek to dilute a portion of our present holding in VRL Logistics in order to provide us with liquidity to enable our investment for the aviation venture," the promoters said in the filing to BSE. 

VRL Logistics' promoters' decision to foray into airline space did not go down well with both investors and analysts.

Fund manager Sandip Sabharwal said, "VRL Logistics latest fancied stock to bite the dust. Promoters announce foray into Aviation with "small" amount of Rs 1,400 crore."


Hubli-based VRL Logistics also reported a 32 per cent fall in its net profit in the March quarter, which hit sentiments, analysts said. 

VRL Logistics Q3 profit fell to Rs 13.21 on account of higher operating expenses and employee benefits. Its revenue increased 5 per cent to Rs 416 crore in Q4. 

VRL Logistics had reported a net profit of Rs 19.36 crore on sales of Rs 398 crore in the corresponding quarter of last fiscal. 

For FY16, VRL Logistics reported a net profit of Rs 102 crore or earnings per share of Rs 11.26. VRL Logistics shares are valued at 35 times trailing earnings per share. 

G Chokkalingam of Equinomics Research & Advisory, told NDTV Profit that VRL Logistics' valuations are not sustainable. (Watch

VRL Logistics, which came out with its IPO in April 2015, had a spectacular listing last year. Its shares gained over 50 per cent (against issue price of Rs 205) on the day of listing. VRL Logistics made a 52-week high of Rs 479 in September last year. 

VRL Logistics shares closed 20 per cent lower at Rs 314.75 on the National Stock Exchange.


Follow NDTV for latest election news and live coverage of assembly elections 2019 in Maharashtra and Haryana.
Subscribe to our YouTube channel, like us on Facebook or follow us on Twitter and Instagram for latest news and live news updates.

NDTV Beeps - your daily newsletter

................................ Advertisement ................................

................................ Advertisement ................................

................................ Advertisement ................................

Top