VRL Logistics Ltd
NSE:VRLLOG
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[Audio Gap] for your opening remarks.
Thank you, Mr. Udit. Good morning to all participants. I'm Sunil Nalavadi, CFO of VRL Logistics Limited. And this is our company earnings call for the quarter 4 of FY 2021. As of -- you are all aware that during the quarter 1 earnings call, we expected that considering the loss in quarter 1 of INR 61 crores, we may close this financial year with the performance of no profit or no loss.Now I am very glad to inform you that we have completed the year with a profit of INR 45 crores. It means we have made a profit for remaining 9 months to the tune of INR 106 crores, which is more than the full year profit of the financial year 2019/'20. Please also note that our net cash flow from operation has increased from INR 257 crores to INR 271 crores during this year.Further know that, only our core sector, that is Goods Transport business, has contributed to the profit during the current year. To achieve these goals, the management of the company has taken various steps, which are mainly consist of: the top management of the company traveled across the country interacted regularly with the ground-level stuff and more authorities have been given to the people on the ground to meet the requirement at a ground level on immediate basis and to focus on market to add more number of customers to increase the connection. Periodic review of freight rates based on the response of the economy, geographical market study, review of product-wide contribution to the revenue, et cetera.We also did effective cost control mechanism, especially the highest fixed cost, such as employee cost, rent expenses and vehicle taxes during the year. We have keenly monitored continuous increase in the fuel rate, which is the fuel cost is the highest cost in our business. The fuel rate during the year has increased by around INR 18 per liter. And we have taken various steps to control the fuel cost to increase the quantity of -- by increasing the quantity of biodiesel, which is more -- much of a cost effective compared to the normal fuel and increase in the quantities from the refinery.And we also reviewed the statutory provisions of the Motor Vehicle Act during the year. And we categorized certain vehicles as non-use vehicles during the year. So this has been helped to reduce the vehicle taxes, which are not in use during the lockdown period. We also focused more on increase in kilometer cap of our vehicle, which by doing better driver management and allocation of drivers to the vehicles. In view of that, the total kilometers from the own vehicles have been increased in the quarter.With this background, just I want to brief the results of the company. During the quarter 4, we are in a position to reach the total income of INR 603 crores from INR 498 crores. And the increase in revenue is mainly contributed by our Goods Transport segment. The revenue from this segment has increased to INR 535 crores from INR 417 crores. And the increase in Goods Transport revenue is on account of increase in tonnage by around 15% and increase in realization per ton by around 13%.The EBITDA of the company has increased by around 67% from INR 59 crores to INR 99 crores. And percentage fees increased by around 4.5% from 11.8% to 16.34%. The EBITDA of GT business has increased by around 1% or 2% from INR 48 crores to INR 97 crores. And percentage to the revenue has increased by 6.6%, that is from 11.5% to 18.10%. The PAT of the company has increased by around 1.6x, that is 1,637% from INR 2 crores to INR 37 crores. And percentage to revenue has increased by around 5.74% from 0.43% to 6.16%.During the year to reward to the shareholders, we did open offer a buyback of 20 lakh shares, excluding the participation of promoters and promoter group and Board has also announced the final dividend of INR 4 per share.With this, I request the participants to ask if any questions for more discussions on the results. Thank you.
[Operator Instructions] The first question is from the line of Pranav from Ideal Investments.
Congratulations, sir, on the brilliant results.
Yes, thank you.
My first question was to understand where are we gaining market share from the unorganized players? And if that is the primary contribution for the increase in the Goods Transport business?
Yes. We are gaining market share from the unorganized people. Basically, during this period, because of the lockdown restrictions and because of the pandemic, and along with that, the fuel price has also increased so that the position of the unorganized players in the industry is very tough. And on account of that, we focus more on no conversion of business from unorganized to organized players.And especially, we did a lot of this product-wise study on a geographical basis. Say, for example, particularly say cities like Delhi, Kolkata or Mumbai or even Tier 2 cities, we analyzed the movement of the goods. And accordingly, we targeted the customers, and we did a consignee marketing. Means the people who are receiving the goods, we targeted them and we converted many of our new customers and added to our core in the current year.
Okay. So understood, sir. The next question was on the biodiesel. So are there any modifications that we have done to our owned vehicle for better biodiesel update? And in view of the ethanol blending targets that have been brought forward by the government, do you think that cuts into our competitive advantage because of our higher biodiesel usage compared to competition?
Yes. Obviously, for vehicles, there are no major technical modifications are required. But what we did even for inside, there should be certain specific planning needs to be done. Especially about the transportation of this biodiesel, storage of the biodiesel. Even we have to do certain modernization in the vehicles and the diesel tanks also.And seasonally, we had to always monitor how this -- the thickness of the biodiesel, that is very much important. So accordingly, considering the geographical temperature across the country, we use biodiesel as and when required. But again, see, cost is also a very important factor here. So always what we do is we always compare with a normal fuel versus the biodiesel. If it is significant, say, INR 5 to INR 6 difference, then only we will go for it.Otherwise, what we will do is if -- because of their raw material costs also increase, they will increase the prices. At sometimes, actually, we decrease the usage of biodiesel. That is what happened in Q4.
Right. Okay. And so if I understand that, sir, you use the sugarcane blended biofuel or there is no specific type that we have...
No, it is more of palm oil and the animal oil usage, but we don't know much about it.
Okay. So usage of your and according to the price differential and -- okay, understood, sir.
The next question is from the line of Keshav Garg from CCIPL.
Sir, so just wanted to understand that, sir, how is the first quarter panning out? Sir, I am sure that it must be better than last year. Because at this time, transportation was not stopped by the government. And sir, also for the full year, sir, what kind of trend you are seeing, sir? What kind of feedback you're getting from your customer? Do you think demand is healthy? And so what rate can we grow this year?
Yes. You're right. Especially in quarter 1 compared to last year, see, last year what was happened is they announced the entire nationwide lockdowns and even they restricted transportation activities also. But during the current scenario or current quarter 1, basically there were no nationwide lockdowns. And even authorities have been diluted at a district level, state level like that. So considering the number of cases and all, actually, they put a lowdown restrictions.Accordingly, we also modified in our operations. And we're in a view that in first quarter, there'll not be much of a loss as we declared in the last year. And whereas in the last 3 quarters, we did a profit of, say, around INR 109 crores. So definitely considering that if the things are improved, if the diesel price will not increase much, then we are hoping that there will be better results in next of the period.
Okay, sir. Sir, also wanted to understand, sir, that what is our CapEx plan for the year? Are we planning to add some more trucks?
Yes. Basically, we have planned much of a higher CapEx. But considering, again, these lockdown restrictions, we're in a -- we are planning to incur a CapEx of around INR 60 crores to INR 70 crores in the current year. And the majority of the CapEx will be for our Goods Transport segment.
The next question is from the line of Rishith Shah from Dhanki Securities.
Congrats on the great results.
Thank you.
Sir, your voice is not clear. Maybe request you to use your handset, please?
Yes. Is it clear now?
Yes, sir, a little better.
Yes. Okay. So the question is more so first question is regarding the GT segment -- Bus Operations segment. Sir, firstly, if you can just give us the growth or degrowth in terms of realization and passenger account?
Yes, sure. Do you want year-on-year?
Yes, year-on-year.
Yes. Year-on-year, the passenger segment revenues reduced by around 20%. And we have also reduced the number of buses by around 46 numbers. On account of that, there is a decrease in number of passengers by around 8%. And there is a decrease in average seat occupation also by around 2%, 2.5%. And there is a decrease in realization per passenger by around 13%.
Okay. So -- and so basically, sir, we see the level of revenue quarter-on-quarter is around similar for the Bus Operations, but the EBITDA if you see has been -- I mean, there's a drastic drop.
Yes.
So I mean, if you can just elaborate on what is the reason over there?
That is mainly on account of increase in the diesel rate. Since we are unable to get the demand of the passenger, we are unable to increase the rates also. So that we are unable to pass on this increasing in diesel cost to the passengers. So that's the main reason for decline in EBITDA trends.
Okay. Understood, sir. Secondly, about the GT segment. So you have -- in the presentation, you have mentioned that you have kind of adding electric vehicles to the fleet.
Yes.
In that sense, can you throw some more light on that?
Yes. Basically, considering the current trend in the industry and given the government is more focusing towards electric vehicles in the coming days, we also started adding some of the electric vehicles in the current quarter. And the top management of the company is continuously interacting with some of the OEMs who are in the process of manufacturing of these electric vehicles. So that whatever best possible from these vehicles is definitely, we have to -- we want to adopt those best things in our operation model. That is what the purpose of the company is.
Okay. So I mean, do we have kind of any target that we need to add as much percentage of fleet as EV in the current year or going forward?
No, it's all, again, based on the technical analysis and based on our requirement, we will take a call. And see first, in quarter 4, we have added around 6 vehicles. And we have added another 20 basis in the quarter 1 also, the smaller capacity vehicles. So this -- considering our requirement and the technical viability and the cost analysis, definitely, we want to adopt more of a new kind of things in our operation model.
Okay. Got it, sir. So the electric charging infrastructure also, that also you are kind of developing in-house or I mean...
Yes. Yes. Now currently, it is developed in-house, and we are using basically the local vehicles so that within the city limit, these vehicles are operating today. We have already enabled the charging facility also.
Okay. That's great, sir. And last one bookkeeping question about sale of power and air transport. Sir, can you give us the revenue and EBITDA for the same for the quarter?
Yes, please. You want year-on-year?
Just the revenue and EBITDA number would do.
Yes. Sale of power, we did around INR 2 crores revenue in the current quarter. And the transportation passenger is around INR 3 crores.
Okay. And the EBITDA?
So EBITDA. EBITDA is negative in the current quarter. Just I'll come back to you on that figure. Okay?
Okay, sure.
The next question is from the line of Mukesh Saraf from Spark Capital.
Firstly, sir, if I just look at your realizations per ton on the goods segment based on the tonnage that you just said. So realization was largely similar in the last 3 quarters, around 6,200 or 6,300 kind of range. So -- and we have obviously passed through the legal costs. The realization hasn't moved up. Is it like we conclude that your lead distances have kind of come off a bit in the last -- especially the fourth quarter?
Sorry, will you repeat your question, please?
How the lead distance has been, sir, in the fourth quarter? Because your realizations haven't gone up per ton, especially with the way the diesel costs have gone up.
So lead distance, it is almost similar as compared to the quarter 3. Because in terms of region-wise movement also, we studied there is no much change in the region-wise contribution and even movement of the goods.
Okay. Okay. So the question is because if your lead distances have kind of remained flat, your realization -- basically, your selling price per ton, your revenue per ton should have gone up, given that you've passed on the diesel costs.
Yes.
But if I look at the numbers based on the tonnage that you have given, it's largely INR 6,200 versus INR 6,150 in the third quarter. So just trying to understand why the increase hasn't been to the extent of at least the diesel cost increase, sequentially?
No, basically, what we did is, we tried to increase the kilometer contribution from the old vehicle. There is a loss in -- sorry?
Okay. Yes, yes, sorry, yes.
Yes. That's the reason we are in a position to maintain EBITDA level also. If we see the overall cost movement considering the increase in fuel cost, our diesel percentage is not increased so much because we -- the diesel rate is increased, but diesel percentage is also increased. But actually, what happened, the kilometers of the own vehicles haven't increased. On account of that, the lorry as a percentage has come down. And automatically the fixed cost related to vehicles has been reduced as a percentage to the revenue.
Understood. Understood. So of your -- okay, so what has been the price hikes that you have taken in this quarter, this fourth quarter?
No, we have not increased any freight rates. We have not increased any freight rates.
You've not increased at all. Okay.
Yes. There is an increase in realization by around 1%. It is even sub 1% because of mix -- change in the mix of the commodities.
Right, right, right. And secondly your other -- the fixed overhead, the fixed costs that you had been telling that you've been looking to kind of contain it. Can we assume, say, at this level, like your employee costs are around that INR 85 crores to INR 90 crores. Your general fixed overheads, say, for the whole year of FY '22, can we assume that it stays at this level? Because in the past, your employee costs have been higher, about INR 95 crores plus.
Yes. For the time being, this trend will continue. Again, see, considering the growth in the business in quarter 2 and quarter 3, I mean, we have to really pay to these costs. The reason is, again, expectations from the staff will also come into picture. If the things are improved, again, we have to give some benefit to the employees.
Right, right, right. Understood. Just lastly, on your Surat facility, could you give some update there? How is it kind of scaling up? And are we seeing some more traction there?
Yes. Basically, Surat facility, the movement it started commercial operation, the tonnage has been improved tremendously. And that movement, we are unable to continue on account of declining overall textile industry. But compared to the other operators in the industry, we are doing much better from Surat, especially Surat booking as well as even delivery to Surat also have been improved. But if we see the tonnage as compared to earlier period and a declining trend in the industry, there is an increase of around 20%, 25% tonnage from Surat.
The next question is from the line of Prateek Kumar from Antique Stockbroking.
I have first question on your tax, I mean, overall of your business. So I mean, the new-age startup to generally talk about lot of tech in their business. So how do we think that we are phased on that front and our ability to compete on tech? Like, I mean, do we really require tech so much because we have higher customer base of SME? Or how do we see ourselves in terms of our requirements of tech and, I mean, tech while going forward?
No, you're asking about the industry?
No, yourself. How is our technology in our business at current levels? Do we see the use of technology significantly higher in future periods? Or are we like sort of a lot of completely well in time for our technology in our operations -- use of technology?
Yes, definitely, we are much ahead as compared to the other players in the industry. The reason is, basically, we are having the in-house IT team. Continuously, we do a lot of innovation in the IT sector, especially IT requirements of our company. And basically, what we do is, we move towards how the customers' requirements are. And apart from that, we always try to improve our process so that actually the service levels would have been improved as compared to other operators.
Okay. Okay. My second -- so my second question is on your employee cost. So a few years back, we did a major employee cost increase. Because I think some -- because of some labor rules at that time. Is it something of that sort can be expected in like over next 2 years? I mean some compulsory upgrade in salaries of employees? Or I mean, it would be only based on improvement in profitability of the company?
No, there are no such plans in the government also. Basically, the government have changed certain policies after this new government. But currently, the existing rules are as per the requirements of the even labor laws and we compared with a lot of -- earlier, there is to have a lot of unrest of the labor or labor -- these unions and all these things.So such kind of movements are not there as of today. And compared to these current minimum wages and even the support from the government, these strengths will continue for some time. Will not be immediate, again, change in the labor law, which are -- or which will majorly impact on the operations of the company.
[Operator Instructions] The next question is from the line of Kaushal Shah from Dhanki Securities.
Congratulations on the good set of numbers. So I just had 2 questions. I missed the tonnage number that you shared earlier for Q4 and for the full year. If you can just please share that?
No, this time, actually, we have given in the presentation itself. Basically, the tonnage has improved.
Okay. So just on Page #25, when it says increase in tonnage by 6% quarter-on-quarter and 15%...
Yes, quarter-on-quarter, it has increased by 6% and year-on-year, it is increased by around 15%.
Correct. But, sir, this is -- this 15% is for the entire year? No, not for the entire year, right, just for the quarter?
Yes, just for the year-on-year. Q4 of last year versus Q4 of the current year.
Correct, correct. And for the full year, sir, what was the tonnage?
Full year, it is declined by around 14%.
Okay. Okay.
For 12 months.
Understood. Understood. And, sir, the second question was on our rentals, the branch office rentals that we had negotiated. We had reduction or decent reduction, if I'm not mistaken, I think, per month. Does it continue even today? Or is it likely to continue in the next, let's say, a few quarters? Or we have now come back to the earlier rates?
No. That exercise we did in quarter 1 of last year. And accordingly, the rent expenses have been substantially reduced in quarter 1 and the things were normalized from quarter 2. So quarter 2, quarter 3, quarter 4, it was at a normal rent actually we paid. And in this current scenario also, some of the requests -- we made some requests, but the overall amount of reduction in rent is very, very minimal.
All right. So just to kind of clarify the fixed cost, which I think one earlier participant had also asked, that will kind of remain more or less steady at the Q4 levels, what we have seen in Q4...
Yes.
For fourth quarter, current year.
Yes.
The next question is from the line of Bhargava from Emkay Global.
My question is regarding the revenue from agriculture and textile, if you can tell me how much it was. Last quarter, I guess, it was 8% from revenue from agriculture. Has it been increased? Or how is it?
Yes. Again, there is some improvement in agriculture commodities contribution. Basically, again, there is an improvement of another 1%, 1.5%. So total contribution, including pesticides, food and agriculture commodity, it is in the range of around, say, 9% now.
Okay. And regarding the utilization levels, how was it?
Yes. utilization level in quarter 4, again, the utilizations were -- see, again, because of this hub-and-spoke model, as and when we use the vehicle, we operate with 100% capacity. Otherwise, we halt those vehicles for some time. But there are -- there was no such kind of haltings in quarter 4.
Okay. And regarding the electric vehicles that you have started, how do you see the performance of those vehicles? Like do you see the TCO parity being achieved with the normal IT vehicles? How do you see the performance of those vehicles as compared to the normal vehicles when compared the cost and all that stuff?
Yes. The performance is much better as compared to this normal vehicle. And the cost of operation is very less. That is the most important factor in electronic vehicles -- electric vehicles.
[Operator Instructions] The next question is from the line of [ Rajkumar V. ], an individual investor.
Can you hear me?
Yes, we can.
Congrats for the good set of numbers. Sir, just a couple of questions. The first one is I heard that a lot of gas companies setting up the LNG station, particularly Petronet. I saw the results and in the commentary, you mentioned that they are looking at setting the LNG stations, mainly for the truck industry.They were telling that the cost of operation will almost come down to 30% for people who convert from the traditional fuel to the LNG. So just wanted to know, I think you mentioned about biodiesel but if you...[Technical Difficulty]
Excuse me, this is the operator. [ Mr. Rajkumar ], we cannot hear you. Your voice is not audible.
Hello.
Yes.
Yes, can you hear me now?
Yes, yes, please continue.
Yes. Sir, I was talking about any -- you talked about using biodiesel as an alternative fuel. Any outlook on converting any of the fleet into the LNG model also because I believe you can reduce your cost more than 30%. That's what the gas companies are talking.
No, please send me the details to my e-mail ID. I will forward -- discuss with our technical team and let us discuss it separately, okay?
Yes. I mean if you could hear the commentary of Petronet LNG the last quarterly results, they have said that they are looking at if the truckers can convert the fleet. They were talking about almost 30% reduction in costs. So if you could please...
Yes, please send me the details. Please send me the details.
Yes, I will. I'll do that, sir. Sir, the second question is we -- there are media reports that the rental markets have started coming down in the current quarter compared to the previous quarter. So if you could please comment on that?
Rental means, the vehicle hires you're saying?
Yes.
Yes. Even in our case, also the higher sales have been reduced as compared to quarter 3 versus quarter 4, in spite of increase in the diesel cost. But this trend may not be continuing for a long period because the fuel price is increasing continuously. Ultimately, the sustainability of these hired vehicle owners are also important. So that trend may not continue for longer period considering the increase in diesel cost.
Okay. So the current quarter rentals were also less than Q4. Is that correct?
Sorry?
You said Q4 is less than Q3. So I'm asking currently at the Q1 is also less than the last year Q4?
No, I don't have data as of today of the quarter 1 of this current year.
The next question is from the line of Depesh from Equirus.
Sir, I understand the pressure on the freight rate and the volumes currently. But the diesel prices continue to go up, right? So I just wanted to know your outlook on the margins. What do you think about doing it?
So currently, it is a very challenging period of time for us because of lockdown restrictions, again, in the market. But we are more focused on the volumes as of today. So considering the growth in volume, again, we will take a call on the freight rates.
Okay. But still now, there is no increase in freight rate. Okay.
As of today, we are not increased, but we are more focusing on the volumes now. Then how the market will turn, accordingly we will take a call on freight rates.
Understood. Understood. And sir, the volumes in Q1 are obviously down this quarter. So just wanted to understand, you said the overall fixed cost will remain same for the entire year, but specifically for this one -- first quarter FY '22, are there any steps taken to reduce the fixed cost and bring down the losses or the margins to improve the margins in this quarter?
No. We have already taken steps earlier period also. The same steps are going to be continued. And so basically about the employee cost and all, we cannot do reduction more than what is currently we are incurring. And even about vehicle taxes and all, yes, because these are all restrictions at a ground level, local level. So earlier what used to happen, as there was nation-wide lockdown, so we are very much sure that there will not be much of operation for next so and so days, so many days.But that kind of trend is not there as of today. And even some of the volumes are also we are moving. So considering that, we have not opted for even no ease option in the current year. So there will not be much change in the fixed costs in the quarter 1. So accordingly -- but we are doing some movement of goods also. It is not that it is completely halted as compared to earlier lockdown restrictions.
Sir, but will you see the lorry hire increasing because like, obviously, the freight rates are lower in the market, so you can use more of a hired vehicles than your own vehicles. So are you doing that thing in the first quarter?
No, basically, usage of our vehicles is also important because we are incurring the fixed expenses. The moment we idle our vehicle and hire outside vehicle, then the fixed costs will remain the same, that will be further loss to the company.
Understood. Understood. And, sir, can you just share the total number of permanent employees that you have at the end of FY '21?
Sorry?
Total number of permanent employees that you have at the end of FY '21. I think last year, it was 99,700, right? So is there any reduction in this year?
No, it's more or less same. But actually, what happened, the attendance of the man days have been reduced in the current year. That's how the reduction in the employee cost is there. And there are some decline in the administrative staff. But there are increases in the number of drivers and all. And we are focusing to deploy more of drivers on the vehicle so that our kilometers will be increased. That is what we did in our quarter 4. Accordingly, the own vehicle kilometers have been tremendously increased.
Right. And lastly, sir, you spoke about in the opening remarks that the biofuel cost has also increased. So since the palm oil prices have continued to rise, so we will see this reduction in the biofuel usage going forward, at least in the first half of this year?
Yes. Q4, that trend was there. There was a reduction in biofuels. Again, we are -- since the diesel price is increasing, again, there is a more flexibility of supplied biofuel. So the quantity will little bit increase in the quarter 1.
The next question is from the line of Keshav Garg from CCIPL.
Sir, I wanted to understand, sir, that recently, there is a news that, sir, Delhivery, they are coming out with the IPO at $4 billion valuation. Sir, and also, sir, there are many start-ups that like Rivigo, et cetera, which are trying to do something like what has happened in the passenger taxi segment, Ola and Uber. So, sir, what is your judgment? Sir, how is this going to impact us, sir? Is there some aggressive discounting going on by the start-ups in logistics? And sir, how is it likely to impact our business?
See, our operation is much different as compared to these operators. You can see the Delhivery, they are highly focused on this e-commerce business and B2C transportation business. But our -- the way our operation model is, this operation model is highly contributed by the unorganized players. So we are gaining market share from this unorganized players to the organized players. So the newcomers, whatever tech-based logistic companies are coming, they are more towards the B2C business, and it will not impact much on our business.
Okay, sir. Sir, so you don't see any impact and no impact of discounting on the market, et cetera?
No. See, whatever they do, it will not impact on us. Say, for example, since you have mentioned the name of Delhivery. See, their major contribution to the revenue is from e-commerce players. And the e-com players, they will never pay any margin to the transporter or the service providers. They provide very thin margin. Accordingly, you can see their losses numbers also.
Okay. sir. Sir, and also wanted to understand that, sir, like what is our current fleet utilization? And sir, also, sir, how are our realization of freight rates sir? How have they moved in the past year?
See, about utilization, always we go with 100% utilization whenever the vehicles we put into on-road. Say, for example, we are having a hub-and-spoke model that will help us to use vehicles effectively. That's the reason, if you see we can increase the kilometers even for our own vehicles to -- by doing some modification about driver mechanism or driver allocation in our system. And apart from that, if you see the freight rates last year, the realization is improved by around 12%.See, we did -- we have taken an increase in freight rates in the first quarter itself. So that is -- that has been continued for a full year. Now current year, again, we are more focusing on the increase in the volumes considering there are disturbances in the market. So as of today, we have not taken a call on increase in the price rates. But considering the movement of the volumes and the fuel price, again, we will take a call in the coming days.
The next question is from the line of [ Shiv Sheetal ] from Samatva Investments.
I just wanted to understand, could you give us the breakup of revenue industry-wise for this quarter, sir?
Breakup of revenue?
Industry-wise, like agriculture, textiles, what would be it like, a total breakup we are having?
Yes. Basically, the cloths and textile business, which is contributing around 17%; the food and agriculture, it is around 9%; electronic goods and all, it is another 8%; and basically, the spare parts, machinery, metals, industrial goods, all put together, it is around 6% each; means the spare part -- vehicle spare parts are around 7%; the industrial machineries are around 7%; the metal and hardware is 7%; the industrial goods are around 7%; the general goods are around 6%; pharma and other is contributing around 6%. It is highly fragmented, except this textile goods, which is contributing, say, around 16% to 17%. So rest of all commodities in the range of around 7% to 9%.
Okay, sir, Got it. So basically, there's been an increase in textile utilization from last quarter, I guess, no, sir?
Yes, yes. There is an improvement in textile. And again, this quarter, again, it has been impacted because of the lockdown. So once the lockdown restrictions are over, again, the volumes from textiles are going to increase.
Okay, sir. Got it. Sir, my second question is kind of a medium or long term kind of question, sir. You just said that you're taking market share from unorganized players. But in the previous participant who had asked the question, are you seeing any tech competitors like, for example, like RAAHO or other companies who are kind of offering services, like, an aggregator for unorganized players? Are you seeing any -- can you throw any color on what's happening in the industry like that?
No, that model is basically to provide vehicle to the operators. See, what they will do, they will create a platform that the market can view how many vehicles are -- they can hire from the market. It is -- actually, we can also use that facility. For example, we are engaged outside vehicle. We can go to that platform and get the hired vehicle based on the data available in that platform. It is not that actually they are involved into our logistics business.
Right, sir. But like on a medium term, like, do you see that they are offering a better platform for unorganized players to come back?
No, unorganized, but only to supply vehicle to the other operators. They are not into -- involved into the logistics business.
Right, sir. No, where are -- coming from -- sir, usually an unorganized player, usually, he does not have the availability of information to provide services from point A to point B. So usually, they have an issue on offering services immediately. So if a platform is offering them that opportunity, can they provide better -- can this be able to sustain at a lower margins as well? Just wanted to understand what happens...
I'm not very clear. See, the kind of market or the kind of activity, what they are doing is basically, they are owners cum operators. Say, they might be having 30, 40 vehicles, they are operating, like that. See, they are not hiring the outside vehicle also.So position of these operators will be in a problem as of today. And moreover, say, if they start engaging outside vehicle, again, they have to share margin to the other operators. Say for example, if the -- if we take, even in our case also, hired vehicle margin is much lesser as compared to our own vehicle margin. If tomorrow unorganized people, if they start hiring these vessels from such kind of platform, again, they have to share their margin to these vehicle owners.
Okay. Right. Sir, can you just throw color on what has been your breakup of revenue of own fleet and leased fleet in the last quarter, sir?
See, we can share the kilometers. We cannot share the exact result. Basically, the total number of kilometers of hired vehicles are in the range of around 8% to 9%.
[Operator Instructions] Ladies and gentlemen, we'll take the last question from the line of Mukesh Saraf from Spark Capital.
Again, on the similar question regarding hired vehicle versus owned vehicle. This quarter, we have done about 8.6 lakh tons. And you're seeing that our -- the proportion of owned vehicles have gone up. In the past, say, in FY '19/'20, with like 7.5 lakh tons as well, we kind of saw the hired vehicle being at a higher level.So do you think -- I mean, till what level do you think you can manage with this kind of a mix of better owned vehicle use versus hired vehicle? I mean can we touch like 10 lakh tons or like 9 lakh tons? Any broad number that you can touch?
Basically, in my view, the quarter 4 tonnage versus what the kilometer we did, it was the best level.
Okay. Okay. So if we go up beyond this, you think the hired vehicle use will go up.
Yes. If tonnage is increased beyond this, again, we have to add a vehicle or we have to engage outside vehicle.
Okay. And then most probably now you look to add outside vehicles rather than owned vehicle because your CapEx also is not very high.
That is one reason. And because of this movement, see, in quarter 1, again, the market is badly impacted. And we have to see how the movement will start from henceforth. Because in some of the locations, the lockdowns are opened up. So depending on these movements, again, we'll decide about the CapEx and which kind of vehicles needs to be added and all this things.
Okay. Okay. Right. And my second question is again related on pricing. We have seen some of your peers on the express side, not only LTL side, but based on the express side, like Blue Dart and TCI Express. They've taken a lot of price hikes in the last couple of quarters. In fact, their price hikes are much higher than what diesel cost entails. So probably now the gap between an express transporter and an LTL transporter has widened a lot.So do you think it gives you an opportunity to hike prices a bit? I mean irrespective of the way you were mentioning about the unorganized players, et cetera, you can -- you're probably the price maker there. So just trying to understand why aren't we looking to increase prices.
No, definitely, see the continuous exercise will be there, even the same exercise we did last year. See initially, 1st April, we have increased the rate. And during the entire year, actually, based on the -- depending on the tonnage, based on the route analysis, we have -- some of the routes we have increased, some of the routes we have decreased the rates. So this exercise will be forever.But based on as of today, the current scenario is there is a lockdown, and there is not much of a movement or there is no higher volumes. So how the market will turn, accordingly, we'll take a call. It is -- see, it is not that we have very much stagnant that will not increase the rates. That is not the scenario. Depending on the circumstances, we will increase the rates. The highest advantage in our case is, again, the -- 85% of our business is we don't have any quotations or agreement with the customers. So we can take a call at any moment. If today, I decided to increase the rate, I can do it.
Ladies and gentlemen, that was the last question. I now hand the conference over to the management for closing comments.
Yes. Just I want to put one of the participants asked about the wind power business revenue and EBITDA margin. In quarter 4, we did a revenue of around INR 2 crores with an EBITDA of around INR 51 lakhs. And whereas the transport of passenger by year, we did around revenue of INR 3 crores and EBITDA is around -- there is no profit -- no EBITDA or it is hardly around INR 5 lakhs negative EBITDA.So with this information. And with this conclude -- below discussions, I would like to conclude this call. And thank you for each and every participant. Thank you.