VRL Logistics Ltd
NSE:VRLLOG
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Good morning, ladies and gentlemen. Welcome to the VRL Logistics Q2 FY '22 Results Conference Call hosted by ICICI Securities. [Operator Instructions] There will be an opportunity for you to ask questions after the presentation concludes. Please note that this conference is being recorded. I now hand the conference over to Mr. Abhijit Mitra from ICICI Securities. Thank you, and over to you, sir.
Yes. Thanks, operator, and good morning to all the participants, and thanks for joining in. We have -- we are yet to discuss Q2 FY '22 results of VRL Logistics. We have some of the management, Mr. Sunil Nalavadi, the CFO of VRL Logistics to give his opening remarks. Over to you, Mr. Nalavadi.
Yes. Thank you, Mr. Mitra. Good morning to all participants. I'm Sunil Nalavadi, CFO of VRL Logistics. And this is earning call of our company for the quarter 2 of FY '21/'22. On account of revamp of economy from impact of COVID and being the organized player in the unorganized [indiscernible] in India. We are in a position to reach the highest ever quarterly revenue and profitability in this quarter. During this quarter, the total revenue of the company reached to INR 638 crores as it reached INR 42 crores during the same quarter of last year, and it had increased by 44%. The increase in revenue is mainly contributed by the goods transport segment of the company. The revenue from goods transport is increased by 40% from INR 448 crores to INR 569 crores. The growth in revenue of GT segment is on account of increase in realization for [ 10 by 7 % ] and around 33% increase, on account of increase in tonnage. The increase in tonnage on account of programs in the economy out of the slowdown due to COVID impact and the addition of the new customer, expansion in network by opening of new branches and focusing on geographic product-wise marketing. We are hoping that considering our focus to increase our network going forward.in the untapped market by using of new branches and the shifting of customers from unorganized player to organized player. The unorganized market who are contributing major share in the industry, our growth category continue even going forward.The revenue from bus operation has also increased to INR 50 crores from INR 17 crores in spite of reduction in buses by 54 numbers. The increase in [ 7 million ] is on account of increasing number of passengers. The total EBITDA of the company increased by around 23% from INR 89 crores to around INR 115 crores, and the percentage of total income is decreased from 20% to 18%. The increase in EBITDA in actual terms is mainly contributed by, again, our good transport segment, which increased by 30% from INR 84 crores to INR 110 crores and percentage to revenue yield was maintained at 22%, around 19%.The improvements in EBITDA is mainly on account of increasing instances volume and the increasing spread rates periodically. The slight reduction in the margin is due to increase in the diesel cost, which is the major cost of our operation. The diesel cost percentage to the revenue increase from 27% to 31%, and we are continually monitoring the diesel rate since the diesel is needed first. In view of a better control of diesel cost, we are focusing to procure more positive diesel from the refineries along with the buying diesel. Currently, we are having our own from 6 locations, and another 1 is in the pipeline to commence. Further, we are passing the increase in cost by increasing the programs. The diesel price has increased from INR 72 to INR 95 per liter, whereas our procurement cost has increased from INR 67 to almost around INR 69. The tire cost was also a little bit increased in this quarter. It has increased from 1.6% to the revenue to 2.78%. The increase in tire cost is due to issue of more tires to the vehicle during the current quarter. Due to increased volumes, the percentage of fixed cost figure revenue has been reduced. The employee cost, this is a major fixed cost in our company, is reduced from 16% to around 13.76%. The EBITDA per segment also increased from minus INR 88 lakhs to INR 32 lakhs, and total EBIT of the company increased from INR 51 crores to INR 75 crores. And percentage to revenues increased from 11.47% to 11.83%, despite the increase in the EBITDA margin because the depreciation is a fixed expenses and percentage is a depreciation through the revenue headwind reduced from 8.82% to 6.22%. On account of increment in EBITDA and EBIT, the overall profit tax of the company increased from INR 41 crores to INR 66 crores, and percentage to revenue increased from 9.44% to 10.29%. And the profit after tax is increased from INR 31 crores to INR 49 crores as percentage to revenue is increased from 6.99% to 7.75%.When we compare our performance in this quarter to the previous quarter, the total revenue of the company increased by around 53% from INR 417 crores to INR 638 crores. And the increase is mainly contributed by against the goods transport segment of the company. The revenue from those goods transport segment increased by 48% from INR 385 crores to INR 569 crores. The increase in revenue of goods transport on account of increase in rates by 8% and increase in tonnage by 40%. The revenue from cost operation has also increased from INR 16 crores to INR 50 crores. Instead of the number of new buses, the buses have been reduced from 291 to 280 buses. The increase in revenue, again, is because of increase in number of passengers. The total EBITDA of the company increased from INR 40 crores to INR 158 crores, and percentage to revenue is increased from 9.4% to 18%. The increase in EBIT being contributed by the gross transport segment has increased from INR 43 crores to INR 120 crores and percentage to revenue increased from 11% to 19%. The increase in EBITDA is mainly on account of increasing goods transport volumes that has been resulted in the reduction in the first percentage of revenue. And the EBITDA of that segment is also turned positive in the current quarter from minus INR 348 crores to plus INR 32 lakhs. And the total EBIT of the company is increased from INR 1.88 crores to INR 7.3 crores. The increase in EBITDA only again from the goods transport segment, which has increased from INR 14 crores to INR 79, and the segment EBITDA improved from minus INR 7 crores to minus INR 2.84 crores. On account of increase in EBITDA and it, the overall profit defeat of the company's decreased minus INR 7 crores to INR 66 crores. And simultaneously, the net profit of the company for the quarter has increased from minus INR 6 crores to plus INR 50 crores. As of the 30th September 2021, the net debt of the company increased to INR 154 crores as compared to debt as of 31st March, it was around INR 101 crores. During this half year, the company has reduced around INR 83 crores in the capital expenditures. Again, it is into mainly the group transport segment. Since we are expanding our network and also adding many new customers, we expect that the volume growth will continue in the coming quarters. Further, as we are having the operation with our own infrastructure facilities, we can have a better control of key expenses, such as diesel cost, et cetera, by procuring this diesel from various sources. And due to good kind of volume growth -- The experiences in the system has improved, especially the turnaround time of the vehicles with optimum load factors. With this, we can achieve more kilometers per vehicles and also higher revenue per kilometer. In this our revenue growth on the momentum will continue in the coming days with the maintenance of the margins at the current level. So this great introduction -- Now I request the participants to ask their questions.
[Operator Instructions] The first question is from the line of [indiscernible] from Motilal Oswal.
Congratulations on a great set of numbers. Just wanted to understand that the margins, so it's almost back to the -- your 17% to 18% levels. So just wanted to understand like the diesel prices have increased further post this quarter, post -- from October onwards. So how are we -- and we had also taken a price hike at the end of 1Q. So how are we looking at margins going forward? Is it like a bit of a one-off that we have kind of this kind of margin or it's kind of sustainable at these levels?
Yes, definitely, the margins are sustainable, especially with respect to the decrease in diesel cost our strategy in 2, 3 ways. One is what we are internally improving upon our system is that [indiscernible] more diesel quantities from the refineries to our old funds so that it will be cheaper by almost 3% as compared to market rates. Currently, we are covering almost around 40%, 45% of diesel quantities from refinery and around 40%, 45% from the designated funds again with our UCL, and around 10% of the quantity we are covering to buy diesel. So going forward, we are targeting to increase the diesel quantity from the refinery so that it is a cost benefit of almost around INR 3 to INR 4 per liter.And apart from that, we are examining the increase in the freight rates also so that whatever additional diesel costs will come, one is we will have a control through our mechanism and other one, whatever it will be there, it will be passed on to the customer. So with this, definitely, the margins are sustainable.
Sure, sir. And also, sir, so that CapEx, if you could just highlight what's the CapEx number we are looking at because you are also losing some one major CapEx in our transportation hub. So if you could just highlight on that, what's the status there? And are we going ahead with that? Or if you could just throw some light on that?
Yes. In the first half year, we have already invested around INR 83 crores. And this is predominantly for our new [indiscernible]. Again, since the volumes are going up we are targeting again to add more number of retails in our system so that we'll have a better control on the margin. So if we have more number of vehicles. So in view of that, again, on a full year basis, the CapEx will be in the range of around INR 140 crores to INR 150 crores.
Sure. And any update on one of the hubs we were looking to procure?
Yes, that actually, we are still verifying the documents and all, but there is no conclusion it.
Sure, sir. Sir, just one last quick question from my side. So in the bus operations, we have seen a very decent kind of pickup, which was kind of not expected at this level. So has it like almost moved to the normalized run rate? Or how do we see this segment going from here? Yes, that would be from my side.
Yes. Based on the current trends, definitely, the growth return this winter also in quarter 3 because of the festival and holiday season. And this segment, again, we are hoping that we can take it back to that original shape, EBITDA margin of around 50%, 60%, in the coming days.
The next question is from the line of Chetan Shah from Jeet Capital.
3 questions on continuation of the previous release. Can you just kindly highlight which are the segments which has contributed better or were at pre COVID level in terms of the area in which we operate just to get a sense of the ground reality of the economic activity, if you can share that number that was very helpful? And second, in terms of understanding the clinical cost pressure, both on the account of higher diesel price compared to the price hike, which we have already taken what is the extra price increase you think we need to take to retain and maintain the margin. And we think industry is to absorb any kind of incremental cost pressure from here on, the other thinking from my side.
Yes. With respect to your first question regarding the contribution from the different segments. So almost all against the improvement is there. And there is actionary performance in case of the textile commodities. There actually earlier, the contribution was around 15% in quarter 1. So that has been increased to around 17%, 18% in the quarter 2. That is one. And in rest of the commodities, the industry, data pharmaceutical, be it all of it commodities and automobile. In rest of all commodities, the contribution is almost similar. So that's the reason this is an improvement in all segments, and there is out-performance in textile. And with respect to the digital cost and the sustaining margin, see, I already told one is we can have a control of diesel cost to different that of procurement, that is one.Even though the price is increasing in the range of INR 6 in the month of October, itself the price is already increased by INR 6. But for us, again, we can have a minimized increase in the cost due to change in our procurement policy that is one. And apart from that, whatever increase will be there even the increased rates in the range of even 3% to 4%, we are hoping that if you take care of the increase in the legal cost. So that we are examining on route, which is where actually we can increase the rate and the examination and we are working on it. And definitely, we are taking care of passing off this increase in resin cost to the customers.
Yes. Just 1 question. Are vehicles compatible with the biofuel? And do you think you need to take any kind of CapEx to change vehicle and does this require any sizable or significant CapEx?
Absolutely not. Just to retain the storage and mechanism for the very reason. But we have already done for all our vehicles. There is no additional CapEx is required to use a vehicle.
The next question is from the line of [indiscernible].
I just wanted to know that you say in your presentation that you have procured about 8 electric vehicles. So I just wanted to know your broad road map for electric vehicles now that you have fast charging networks that Tata has deployed on highways. So I just wanted to know what is your view on that as far as goods transport vehicles are concerned?
Yes. With respect to electric vehicles, we are already using around 28 to 29 vehicles in our systems, and these are all capacity vehicles which are operating from [indiscernible]. And going forward, again, the charging point and all actually we develop ourselves in our branches. So currently, we are focusing more towards electric vehicles, where ever possible, we want to introduce these vehicles, because the cost of operating it is much, much lower as compared to the normal vehicle. But initially, it requires some good amount of CapEx. Affecting the sense, if you see the CapEx for one from capacity, the normal vehicle and electric vehicle is much different. So that's the reason we are ready to put that kind of a CapEx to utilize our operational cost. And wherever possible from [indiscernible] operation, actually, we want to cover more of an electric vehicle, and then these numbers we will further increase in the coming days.
Okay. As a follow-up. So as I understand, this is only to hub to spoke that you are doing. So between hub and hub, long haul, you are not considering as of now, correct?
Yes, we are resuming those auctions. But considering the load factor and even see what will happen is the electric vehicles, the gross weight of the -- vehicle weight is much more heavy than normal vehicles because of the weight of the batteries. Yes, Considering these factors, we are also examining to see that, currently, we are buying to 1 ton, 2 ton capacity electric vehicles. Now we are working on 6 ton, 7 ton vehicle, whether we can adopt those vehicles in our system. But like the 20 ton, 24 ton, 28 ton vehicles what we are operating at those capacity vehicle, we cannot solve even electric vehicle is not available as of today.
And these are retro seated to your existing chassis or these are new vehicles that you are procuring?
No, these are all completely new vehicles.
The next question is from the line of Mukesh Saraf from Spark Capital.
So the first question is on the addition of the vehicles. At the end of first quarter, we have said that probably end up spending about INR 70 crores for vehicle action. And now we are talking about. So we are doubling that. Could you give some intent on how many vehicles we'll be having and what is -- I mean, obviously, you're under or are you can be proud of...
Sorry, Mr. Saraf, can you speak louder. We're not able to hear you.
Yes, is it better now?
Much better.
Yes. So could you give some sense, sir, on what has driven this vehicle addition plans? And in relation with that, how is your outside vehicle hiring charges?
So see, our strategy is very clear that if the volumes are increasing, if the actual volumes of the strategy, we are going to increase our loan capacity rather than depending on the higher rating. So with that background, since we colored the volume growth in the current year, the current quarter, we added around 138 vehicles per quarter.
Right. So what is the plan for the year in terms of vehicles?
And the similar kind of vehicles will be added in the coming quarter, around in the 110 per quarter, at least, we are planning in the next 2 quarters.
Right, right. And so this quarter, how was the vehicle higher charges because last quarter was about INR 25 crores of payment at maybe -- how was it this quarter?
Yes, again, higher charges, the percentage is more on debt side as compared to the percentage to the revenue.
Maintain at around that.
Yes. it is around 7% of the revenue. Whereas in absolute terms, increased by 62% from INR 25 crores to INR 41 crores.
Sure, sure.
And percentage to revenue is maintained at around 7%.
And we want to maintain this kind of 1% to 7% because we are adding our own vehicles?
Yes, around 7% to 8%, we will maintain the highest.
Understood. And the second part is in the opening remarks you mentioned about network condition, can you give some clarity there? I mean, are we adding more of these correction centers in the North India or in which regions we are adding. Could you give some more sense on how we are placing at?
Yes. Basically, we are planning to add more number of brands in the until market partially in north region, Eastern region and make Sweden. And currently, we have already added around 22 branches in the -- this quarter. And going forward, we are planning to increase our network -- we are planning to add another 100 vehicles over in the next 3 to 5 months, especially these branches using the untapped market because.Now earlier, we were able to expand our network in these areas because of the compliance issues and all these things. Now we are seeing better control and most of the people, they want to have a compliance in their transactions. So in view of that, we are planning to add around 100 vans in these areas, especially the North Eastern part and on pulp.
Understood. And these are all own company-owned branches? Or is it like franchise?
Yes. These are all company-owned banking flow planning. Yes, except we opened around 4 to 5 branches in [indiscernible]. So those are agency branches. But in rest of the places, we are having a whole branches. And initially to begin with, these are all small offices like among area with not staff. And while and when the tonnage will improve again the space will be expanded.
Right, right. So the -- I mean, assets opening of these branches, you can bring quite quickly at the branch level. That is not an issue, sir.
Yes. Obviously, the one thing that will happen is whatever the new area we enter the rest of the branches will support to these branch. For example, the moment we opened the branch at Srinagar. Booking from all the places to Srinagar has been started. Even though origination from Srinagar takes time, but delivering to that area will start from the day 1.
Right.
So that will not take much [indiscernible].
The next question is from the line of Rishith Shah from Dhanki Securities Private Limited.
So while most of the questions have been answered, just 1 question. In the brush operations, can you just give us the number of cars and the increase as well as fleet occupancy?
Yes.
Can we move on to the next question?
Yes. The passenger revenues increased INR 19 crores to INR 50 crores. And this revenue is mainly about increasing number of passengers is almost -- it is 200%. From 133,000 to 477,000 passengers. And the relation is not up to the mark it is in the range of around INR 1,100 -- and the seat occupation level has been increased by 7%. I mean the earlier last year was around 71%, now tends to 78%.
The next question is from the line of Vikram Suryavanshi from PhillipCapital India Private Limited.
Yes. And happy Diwali. Most of the questions were already answered. But can you just explain the biotic consumption was a bit lower than what we normally target.
Yes.
So like what was the concern?
Now just I want to give some brief about the cores. Given the cost of the bio dealers drastically because of their raw material cost is intensely the families. So for that reason, the quantity will be maintained at around 10% to 12% because there is no more gap between the cost of diesel through refinery versus the value of diesel. So considering this fact, we are more focusing on the procurement of more quantity through the refinery through our old funds. And periodically quantity will be maintained at around 10% to 12%.
Okay. And sir, just a slightly technical question. Is it against, is it tested by our own experience in terms of quality and performance or is it approved by any government agency so far? .
No, it is tested by our own. Our technical team has examined the estimate of this vehicle and how we can [indiscernible] on our vehicle. That's why our top of [indiscernible] is also very limited through very limited suppliers because there are many suppliers in the market, they call it as a bio diesel, that [indiscernible].
And you already explained about side vehicle you said, but is there any significant increase in the cost we are paying for making rates? Or is it mainly because of the volume growth that we have seen.
Yes. Obviously, I think one is always our vehicles should be powerful and our turnaround, the load factors should increase on our vehicle. And because of the increase in volume in the last quarter, that is also another big factor that the turnaround time of the vehicle has been improved lot and along with the load factors. So considering all these parameters, only on need basis we engage outside business. If the volume growth again is definitely decrement there as of today. And with this -- even in quarter 2, we hired the vehicles in a range of around 7%, 8% of our vehicles other than ordinary travel. So going forward also, the most of the percentage will be continued.
Yes. I got to like rate what you have seen last year for, say, a particular to outside vehicle and today what we are seeing [indiscernible]. I was just trying to understand if there are very high increase in freight rates or a way to have paying for outside vehicle for same capacity of...
Yes. The correspondent to the increase in diesel cost, again, [indiscernible].
Mainly because of retail cost. Otherwise, there is not because of market tightening or something we don't see much.
No, no, no. It's mainly on account of the diesel price.
The next question is from the line of [indiscernible] Shah from Dimensional Securities Private Limited.
I joined the call a bit later. So can you share the volume growth for the first half for the company as well as the industry?
No, we do not have any industry information. .
And Do you have an indicator is whether you have gained the market share? Or how is it?
Yes. Definitely, we see a lot of new customers have added into the picture.
And...
Half year basis, the percentage increased more around 63%. 63%, first half. First half, Year-on-year.
Okay. Okay. And sir, so we are seeing that they are once again embarking on a CapEx cycle. So just wanted to understand, if I look at number in FY '17 to FY '18, '19, you to do significant turnover of around 2x. It has done around to almost 1.1 or 1x. So here on, can you expect 1x 2 to 3 from the existing [indiscernible] we are going to go back to 1x, 2x kind of [indiscernible]?
Yes. Definitely, it is possible. The reason is because of the volume growth and because of an improvement in the realization also set a ratio will improve as now.
Okay. And if I have to ask you what kind of trend you are seeing for next 2, 3 years? Can we expect double-digit volume growth for the next 3 to 5 years?
One during last, I commented at we're hoping that the year-on-year, there will be 15% revenue goal. So frankly, that is a [indiscernible].
Okay. And so the margins that we are doing this on around 18%. So let's say the GP margin is in the 1-1 stake. But if I look at the historical numbers of VRL Logistics, it needs to do 17%, 18% [indiscernible] branding. If you transit you 20% to 22% post India [indiscernible]. So do you think that is receivable at the factor that has been about?
No, we want to say in our margin in, And that has been reached for 19%, 20% now equipment. So this 19%, 20% is going to continue. With this improvement to current on an auto basis, 19%, 20% is a maintainable market in these transport segments.
Okay. And sir, in the bus transportation, any update on the nationwide permits? And what is our expansion plan there?
Yes, currently, that all in the permit has been given for the business. Now the table is submitted not at all, which is -- so considering this fact, now our focus is to use existing vehicles that are more optimum level with the hard increase in numbers around 15, 30 points, whatever some of the rates -- so apart from that, on the recreate the utilization level, then we can see the concern but I think that we are consolidating more of the existing how best we can use these vehicles. So once the second on level of growth in the profitability, then post that definitely in the boxes.
Okay. And just last question, what would be the capacity utilization for our [indiscernible] transport and bus transport for this quarter?
Bus transport, I've told the utilization is around 78% in the passenger capacity. And I think [indiscernible] is associated to a particular region. But because of the increase in volume, the turnaround time has an improved loss in the current quarter.
Right. If you exclude the average capacity for the quarter, then what will be the utilization?
Will you repeat your question here?
Sir, If I take the average capacity that is full capacity -- the average of full capacity and new capacity we added, what would be the utilization in terms of finance in transport?
Yes, utilization we'll always keep at 100%. So we are adding to itself based on the requirements. We will not add a vehicle and see for capacity or [indiscernible]. In the tonnage is available in hand, that's why we are adding the base. A comparative offset vehicles. And if the volumes are continuously increasing, then we should instead of hiring the vehicle.
The next question is from the line of Suraj Navandar from Sampada Investors.
What was the [indiscernible] for this quarter? And if you can compare with pre-COVID levels not last year, but...
Yes, that we refer over concrete result.
Okay. Okay. [indiscernible] volume growth is coming even based on your interaction with your customers or what gives you that confidence?
And one is related growth from the existing customers. And apart from that, we are adding a lot of new customer new customers across all sectors. So that is giving confidence for us that slightly these volume books are sustainable. And we hope that basically the new brands, which we are opening untapped market, all these days were unable to attain our business in are, especially the Eastern, Northeastern market and even being pointed only on account of the low compliance even in those areas. Now what is happening after GST, PE meeting a lot of transformation is happening from non-compressed terminals to compressed.And even many of the players actually they want to shift it from other line to organized players. That's the reason actually we giving confidence for us and we have examined given some of the factors that we have 40 years of business we are unable to carry a shipment of these commodities. Now most of these commodities are shifting basically about the popular product for sectoral and the battery network, super what we care a to get a load of these commodities earlier. Many of the customers are approaching and we are carrying these. And even on the loss side, [indiscernible]. Earlier, we were unable to get these goods. So that's the reason we are very much confident and now actually, many customers are approaching [indiscernible]. So that's the reason, actually, we are really out to them and a lot of new performers are coming into our earlier. That's the reason we are hoping over we have work by longer.
Just a clarification, what you talked about, many people in the good sense of the categories. So they are partly go with someone else and how well we with us or a side?
No, no. We are shifting from other operators, too.
Okay, because are getting the market share to some of our other players.
The next question is from the line of Abhijit Mitra from ICCI Securities.
So I have 2 questions. First of all, I missed the data point, just at that you'll add 100 branches in 3 regions, Northeast and Northeast. What is the time frame for this brand dilution?
Yes, around 4 to 5 months.
4 to 5 months. Okay.
Yes. We already carried the market. We identified the place. Just we identify the need to offer that to the conditions to some time the [indiscernible] 4 to 5 months, these brands will open.
Okay. Got it. And second question I had is regarding Gujarat hub, I'm sure with a recovery, you would have seen a decent ramp in the business from that particular hub. What more ramp-up potential do you have in terms of either revenues or in terms of out of the -- if you can highlight over the next 18 to 24 months that you foresee.
Yes, this is a good question actually. We -- in the overall tonnage improvement, we need around INR 40 crores in the -- but the increase in tonnage was around 150% compared to year-on-year growth if you see the July, August and September will increase around 50% business. That's a side of our growth actually we'll assume from that area. And thanks to our infrastructure facility that we are using to handle this commodity because earlier most of the cans we were unable to book the condiment because of Russian markets. But this time, we had complete or from this market that's why on account of that, it is almost its around 150% year-on-year growth is there from the area.
Okay. And in terms of the revenue potential or return potential, how much more can this deliver?
Yes, still there is a score. Now what is happening, even most of the return growth from a different place only in the -- and because we are having to do the delivery office of [indiscernible].That's why even 2 [indiscernible] has been improved by almost around 50%, 60%. We are hoping that, that will also reach to the level of around 100% growth in the coming days from rest of the places to [indiscernible].
Okay. Okay. Now just to quantify, investment was around INR 100 crores. So what is the revenue?
Yes, revenue is almost we are doing around 140, around -- yes, INR 110 crores, INR 120 crores.
Okay. can reach what level as [indiscernible].
Yes, I can take some time because it is an investment in a lease property. So over a bit of next 2 to 5 years a repeat around 2x.
The next question is from the line of Prateek Kumar from Antique Stock Broking.
I wanted to ask that it seems to be a super robust environment and also, [indiscernible] I want to ask that when will the last year a kind of environment for us in terms of investing?
The question was not clear. Can you repeat?
I wanted to ask when it be last sort of kind of move environment for our company for maybe investing?
Yes, in the recent quarters, there were no such in of growth as well as the margin. Yes, we compared from 2020 onwards, as we already covered in the presentation as in quarter 1 of FY '20, we were at INR 542 crores top line. Now we reached 57, 48 crores. .And with an EBITDA level of INR 91 crores during that time of the year, we reached INR 115 crores. So it is much more than the pre-COVID level I would say our performance is. And there are no disturbances, again, this moment to really continue.
Also, you said that first half balance growth was 65% year-on-year. What can we do because this is obviously further base normalization. But as base cash is up for about 10 million [indiscernible] second half. Is 15% you said?
Yes, 15% year-on-year growth. .
And that was second half.
Second half.
So that will take our annual time is go to what number?
Similar now 40%, then another 15%. So definitely.
And we don't have absolute based on kind of number that I'm asking. What will be our annual tonnage growth number if we say we have a second half 15% and into?
Yes, it will be in the end of around 45% year-on-year.
45%?
Yes, because first half is around 60% plus. So now it will be around 15%. So this will be in the range of around 40%, 45%.
And the 5% to 7% would be realization at [indiscernible]. So we have 50% of [indiscernible].
7%, 8% realization is already -- the rates have increased will continue. And again, we are thinking about the increase in the rates. There will be further improvement in realization also.
So we may have a 50% top line growth in good segment?
On a full year basis?
Yes, full year basis.
Yes, it is 4,700-plus [indiscernible] INR 300 crores to INR 400 crores offline.
Okay. And 1 question on bus segment. While we are looking to add a good sign, is there an outlook on addition there? Or [indiscernible] now going down?
Where? In buses?
Buses, yes.
Yes. Buses, since the INR 50 crores has been already talked in quarter 2, there will be improvement from this INR 50 crores. We originate the revenue increase on the 60 crores, 65 crores revenue.
Sorry, your voice, I can't hear you.
In this quarter, we did around INR 50 crores. So again, there will be a growth of, say, 15%, 20% growth we are expecting in coming quarter. Expecting quarter 3 and quarter 4, [indiscernible] again slowdown in business because we can run less. But the true picture design will start from quarter 1 of the next financial year. .There is the improvement in Q2 and Q4, but things are normal from Q1 of the next year, it will bounce back to the volumes because of the number of meters have reduced the turnout in the range of around INR 50 crores also and with an EBITDA margin of around 15%, 17%.
The next question is from the line of Sachin Trivedi from UTI.
Some of my questions have been answered. But I will still want to actually go back to the point that let's say you are guiding for that you are working towards achieving a 20% volume growth for -- let's say, a double-digit volume growth for the next couple of years. In which case, let's say, for at least next 2 years, what mean of CapEx that you would look to do you can guide towards that you already alluded to the fact that you're working towards increasing the asset turn ratios. We're still trying to figure out what kind of that we would be doing in or presuming you were to achieve that 20% volume growth?
No, again, just I want to clarify, the growth in volume is not in to do with the CapEx. The addition of their vehicles on us to bring efficiency in the system. But in spite of that, yes, as our strategy is to adopt or to provide service to move from the old it. So overall CapEx number will be in the range of around INR 110 crores in a year, current whatever the expectation of the volume growth.
Okay. And sir, in terms of -- you've been also pointing to the fact that there are newer and newer geographies you're trying to add branches. So just trying to understand in terms of large clusters, if we were to say that what is -- how much market is untapped for us, if you can give us some color? I know I'm asking a broad question, but in a large -- yes, you can answer that.
Yes. Yes, I want to give clarity about the reason why contribution. We communicate that the reason is contenting almost around 40% volumes. And this is based on the [indiscernible] of the bookings. And the net spend in North of contributing in the rate of around 20%, and the late market is contributing to around 10% of the volumes. Now going forward, definitely, there is a scope that we can reach this reasonable growth or real contribution from even [indiscernible] in the level of around 30%, 35% on a yearly basis. But that actually we are planning. And the South is definitely whatever we are having a good kind of a presence in all the things. And here, the more contribution will come from a new customer and growth from the existing customers. But from the last and some of the western market, even the Eastern market, these are not -- we are completely untapped market. So we are hoping that there is a good growth of waning contribution from the one reason going forward. So even there is a scope that even these can increase their contribution to in the range of around 25% to 30% in the coming day [indiscernible].
Okay. Yes, yes. Okay. So immediately, these are the markets that you would [indiscernible] you mentioned then. Is it fair to understand that we were present in some of these areas, but we are well entrenched in South and now we are actually trying to grow our sales in Q2 or network in some of these markets, which are known to us, but now we will go full [indiscernible].
Yes. Yes, yes.
And sir, just one last question with respect to the employee cost. So I know for this expansion, we might have a number of employees as well. But in terms of if I want to understand the cost inflation because now everything is getting expensive. So in terms of drivers payment or in terms of employee costs, which are on the fixed rule for us, how do you see that inflation for us?
Yes. Basically, in the prior crop again, even completely variable cost, the minimum age is accounted as a salary and balance is coming part of our operation for. And to the other -- other than drive the employees cost, they may increase in the range of around 12% to 15% in accrual percentage in next year.
This is how it is reported as an employee cost because anyway, the drivers are reported in your...
[indiscernible] operating.[Audio Gap]