VRL Logistics Ltd
NSE:VRLLOG
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Ladies and gentlemen, good day, and welcome to the Q4 FY 2022 Results Conference Call of VRL Logistics Limited hosted by ICICI Securities Limited. [Operator Instructions] Please note that this conference is being recorded. I now hand the conference over to Mr. Sunil Nalavadi, Chief Financial Officer. Thank you, and over to you, sir.
Thank you. Good morning to all participants. I'm Sunil Nalavadi here, CFO of VRL Logistics Limited. And this is an earnings call for the quarter 4 of the financial year 2022 and give an update on the full year for the financial year 2021, '22.
I would like to commence the call with a note that the [ VAT ] collections in April 2022 posted an all-time high of [ INR 13.168 lakh crores ], which has been driven by a another year high GDP growth and the tightening of compliance by the government, which has led to lower [indiscernible] and a [indiscernible] in the high ticket consumption post pandemic period. And even generation of highest e-way bills has been recorded after the introduction of e-way bill system by the government.
Now the government has mandated to generate e-invoicing by the business entity [indiscernible] of INR 20 crores and above from April 2022. Earlier, it was mandatory to generate e-invoices by the entities having the [ turnover ] of INR 500 crores and above from October 2020. We believe that these information and steps taken by the government clearly indicates that the business transaction needs to be done in a compliant and organized way rather than the noncompliant manner, which were or being supported by the unorganized [ transporters ], while transportation of the goods.
With this background, VRL, as an organized player in the transport industry, recorded highest goods and full tonnage in the current quarter and expecting that, the year-on-year growth in tonnage momentum will continue in the range of around 20% to 25% year-on-year basis. The diesel prices were all-time high during the financial year '22, and government announced cutting in taxes on fuel in November '21 and May '22 to control on the increasing fuel prices.
The company also has taken suitable steps to pass on additional cost burdens to the customers, by which it was reflecting in our growth in EBITDA margins. The higher growth in Goods Transport volumes resulted in higher growth in revenue during the year and [indiscernible] certain variable costs and fixed costs in the revenue has been declined due to which -- due to the operational synergies in our operations.
The Bus Operations segment has been turned to positive EBITDA earnings business segment post the pandemic. To concentrate on high growth oriented and higher return [indiscernible] to boost good and services business, the company has decided to sell the noncore segment of the wind power business and also sold one of the aircraft in quarter 4 of the current fiscal.
Moving to the growth in goods transport volume and the vehicle scrappage policy announced by the Government. The company plan to expand its goods transport vehicle capacity by placing an order to buy 1,600 vehicles over the period of next 12 to 18 months. Considering the shift of Goods Transport business from the unorganized operator to organized operators, we are expanding our network by opening of 91 branches in the current year and further planning to open 100 branches in FY '23, mainly in untapped market.
We have also seen that commodities, which was being handled majorly by the unorganized sector, has been shifting to [indiscernible]. For example, the coconut products, in FY '19, we used to handle around 48 tons in a full year. Now the tonnage of this coconut product we handled in FY '22 around 5,595 tons. Similarly, the leather products has been increased from 2,422 tons in FY '19 to 15,000 tons in the current year, and the areca nut and Supari products from 4,925 tons to 11,500 tons.
Turning to the financial performance of the full year. The total revenues increased by around 36% from INR 1,776 crores to INR 2,410 crores and which is majorly contributed by our Goods Transport segment. The EBITDA of the company is increased by around 62% from INR 260 crores to INR 421 crores. And EBITDA margin increased by around 2.8% from 14.66% to 17.46%.
The PBT of the company increased by around 229% from INR 63 crores to INR 210 crores and percentage to income increased by 5.12% from 3.59% to 8.71%. The PAT of the company is increased by around -- to 55% from INR 45 crores to INR 160 crores, and percentage to total income increased from 2.54% to 6.64%.
When it comes to Goods Transport revenue, it has increased by around 35%, from INR 1,592 crores to INR 2,137 crores. And it is mainly contributed by increase in tonnage by around 27% and the realization is increased by around 7% in the year.
The EBITDA Goods Transport segment, which is increased by around 51% from INR 266 crores to INR 403 crores and percentage fee income has increased from 16.73% to 18.84%. The margins in the Goods Transport segment increased mainly on account of there is no increase in the total operating cost, which is almost around 55% of the revenue, and employee cost has been decreased by around 2%.
The key movement in the operating costs are: there is an increase in vehicle operation of diesel cost, which is increased by around 1.7% to the revenue. That is around -- earlier, it was 28%. In the current year, that percentage has reached to 30%. And similarly, there are a decrease in certain operational expenses, mainly the vehicle repairs and maintenance expenses is almost 1%, from 8% to 7%, and bridge and toll tariffs also declined around [ 0.4% ]. The rates and taxes, which are fixed [indiscernible], again, it is reduced around 0.1%. And insurance is also the fixed expenses, which is reduced around 0.25%.
So the next comes to the Passenger segment, which has increased around 57% in the revenue from INR 130 crores to INR 205 crores. And the revenue of the Passenger segment increased on account of increasing the number of passengers in the current year.
When we compare on a quarter-on-quarter basis, the overall revenue is increased by around 11% from INR 603 crores to INR 672 crores. And the EBITDA of the company increased by around 34% from INR 98 crores to INR 132 crores. The PAT of the company increased by around 51% from INR 37 crores to INR 56 crores, which is a year-on-year quarter 4 comparison. Again, the overall revenue is contributed majorly by the Goods Transport segment, which has increased around 10% from INR 535 crores to INR 587 crores, and the tonnage increases contributed around 6% in the Goods Transport segment, and the realizations are improved by around 4%.
The Goods Transport EBITDA again increased by around 17% from INR 103 crores to INR 122 crores. And percentage to total income has increased from 19.33% to 20.73%. The margins in the Goods Transport segment again increased on account of there is a decrease in total operating cost by around 2.2%. Earlier, the operating cost percentage were 65.59%, but that has been reduced to 63.39%. And there is a slight increase in the employee cost in the current quarter from 14.4% to 15.13%.
The key decrease in the operational cost is the decrease in the diesel cost as a percentage related to the revenue. Last year, same quarter, the percentage was around 30.5%. Now it has been reduced to 29%. The vehicle running repairs and maintenance expenses reduced by around 1% from [ 8% to 7% ]. And there is a slight decrease in the [ tire consumption ]also by earlier, it was 2.39%, now it is 2.07%.
The Passenger segment revenue also increased by around 11% from INR 56 crores to INR 62 crores. Again, the contribution is mainly on account of increase in the number of passengers.
When we see the quarter-on-quarter as compared to the Q3 of FY '22 versus Q4 of FY '22, the revenue from operations -- the total revenue is little bit decreased by 1.69% from INR 683 crores to INR 672 crores. I mean, again, the Goods Transport segment revenues increased from -- decrease to around 1.42% is decreased from INR 596 crores to INR 587 crores. And the Passenger revenues also decreased by around 17% from INR 74 crores to INR 62 crores on account of seasonality.
The EBITDA of the company overall maintained. It is slightly decreased by around 1%. We did an EBITDA of around 100 - it has been reduced from INR 134 crores to INR 132 crores and percentage to the [indiscernible] increased by 19.6% to 19.71%. The PAT of the company has also decreased by around 7% from INR 60 crores to INR 56 crores.
So this is a brief of the financials. Now I request to the participants to ask the questions.
[Operator Instructions]
The first question is from the line of Alok Deora Motilal Oswal.
Congratulations on decent numbers. Sir, if you could just provide data on the volume growth and the realization growth for this quarter and full year as well?
Yes. Basically, this quarter, the tonnage is increased by around 1% from Q3 to Q4, and the realization is decreased by around 2%. Basically, the tonnage is increased even though it is always when we compare quarter 3 to quarter 4, always, we used to see the dip in the tonnage, but this time, actually, there is a growth in tonnage by 1%. And the realizations are a little bit declined around 2% on account of wherever actually, we started the new rules and new customers, we offer certain discounts if it's a customer [indiscernible] route.
So what's this number, sir, Y-o-Y?
Y-o-Y, I already shared earlier.
No, it was full year growth in tonnage and price.
Yes. Just on a full year basis, the tonnage is increased by around 27%, and the realization is increased around 7%.
And also, sir, just biofuel consumption has been continuously declining, and it's declined further in Q4. So that was one benefit which we always had where we were -- our diesel costs were much lower than the Street. So -- or as in the total diesel fuel consumption cost. So how do we see that going forward? I mean is it like that advantage we don't have any further or how is it?
So basically, now what is happening after increase in synergy bps of palm oil prices and Indonesia put certain restrictions on the export of the palm oil, there was a steep increase in the palm oil prices, which was major raw material for the biodiesel. Since recently, the Indonesians withdraw that restrictions, [indiscernible], the palm oil prices are now declining.
So going forward, we have to see, again, if biodiesel is available at around -- at least around 5% to 6% lower than the normal diesel price, then definitely we buy the biodiesel. Otherwise, we will not prefer it.
Sure. And just last question. Sir, in the Bus business, we have seen the performance has been a little weaker on a quarter-on-quarter basis. Whereas the understanding was that it would be pretty strong since the unlocking happening. So just any insights on that, how are we looking at that segment?
Now basically, what will happen, the Q4 will be very low revenue in the Bus segment basically because of the exams and all about the students. The overall number of passengers traveling in the current -- during Q4 is always low. So now, in Qi again, the demand has [ rebounded ] and there was actually a little bit of [indiscernible] in the current quarter.
The next question is from the line of Vikram Vilas Suryavanshi from PhillipCapital India Private Limited.
I hope I'm audible.
Yes [indiscernible].
Sir, regarding -- if I missed on volume on passenger growth in number side. What was the passenger growth Y-o-Y and [indiscernible] realization growth as well as passenger load factor?
You want tonnage growth first?
No, Bus segment, sir, passenger growth.
Yes, passenger. So about passengers, see, on a full year basis, it has improved by around 37%. Last year, the total number of passenger traveled is around 13 lakh passengers. And this year, actually, the total number of passenger traveled is around 19 lakhs. When it comes to the year-on-year -- last year, the total number of passenger traveled is around [ 606,000 ]. And in the current quarter, it is [ 604,000 ]. And in Q3 FY '22, it is [ 658,000 ]. About the realization in FY '21, it was around INR 1,000. And FY '22 full year basis, that has been improved to INR 1,073. And in Q4, it was 921 buses. And Q3 also in FY 2022, it is INR 1,023 and Q4, it is INR 1,131.
Got it. And what was average diesel price for this quarter for us as well as for industry?
Yes. So basically, the average procurement cost in the current quarter is around INR 86 for us. In Q3 FY '22, it was around INR 88. And in last year, Q4 FY '21, it was around INR 80, INR 79. And on a full year basis, in FY '21, it was around INR 72. And in FY '22, that INR 72 has increased to INR 87. This is our procurement price. When it comes to the market price, actually the retail price we have taken as a benchmark, but these prices as in the close of that particular period.
In FY '21, it was around INR 85. And FY '22, it has increased to around INR 92. And similarly, in quarter 3 of FY '22, it was around INR 85.
Okay, got it. And a last question from my side. If we look into revenue contribution. So particularly for East geography, we have seen very strong growth. Is it like the structural growth, what we are seeing there or this will be normalized going ahead?
This trend, we are hoping that it will continue at least for 2 to 3 years period. Basically, we are seeing that a lot of transformation in the industry. Especially the shipping is happening from small fleet operators to the large fleet operators for organized players. So that's the reason we are opening more number of branches also. In the current year, we have opened 91 branches. And for FY '23, we are planning to add another 100 branches. So definitely, this momentum and growth, we are expecting that it will continue at least for around 2 to 3 years.
[Operator Instructions] The next question is from the line of Krupashankar NJ from Spark Capital.
So I just wanted to understand -- is my line clear, sir?
Yes, it's clear.
Yes. So just wanted to understand, sir, you did mention that there is likely tonnage growth of 20% to 25%. And there, you were mentioning on the point where e-invoicing as a regulatory change is going to be one of the drivers for this tonnage growth. Just wanted to further understand what are any other drivers which you have also in the industry see. Because the extent of products where the tonnage has increased substantially, first of all, has it happened because of regulatory environment change? Or is it more to do with our network and that's how we are able to capitalize on this opportunity?
Yes. Initially, the sum of products, what I mentioned, it is only on account of the compliance level than change in the regulations. And apart from this, we are expecting growth even in, say, by expanding our network. So these are all -- most of the branches are opening in an untapped market. And basically, that is going to add a lot of new customers into our [ core ].
Just I want to mention even the number of customers that prior to this COVID impact that we used to handle around 400,000 plus customers. Now the number of customers have been increased to around 700,000 plus. So initially, these customers' contribution and the new customers' contribution is even lower. But going forward, once they adopt for a certain route, then definitely they established our services to other routes also. So we are expecting more contributions from them as well.
And further, the addition of the new customers will continue since, again, we are opening the new branches. And moreover, earlier, also what needs to happen. See, if 1 supplier used to distribute his products in a multiple routes, only some selective rules actually used to give you to VRL and some of the routes we used to depend on some of the smaller fleet operator or [indiscernible] operators.
Now I think for the entire [ group ], wherever the supplier groups are happening. Actually, he is planning to ship to VRL. It is [indiscernible] and we will provide all the information to him to have proper compliance and other things. That's why we are expecting that the 20%, 25% increase in the tonnage is definitely the achievable number.
My second question was on the fleet addition and on higher cost. Just wanted to understand what was the [ volume high ] cost for the quarter. And given that you are intending to add much of it in FY '23, just wanted to understand what would be the target of bringing down the lorry hire [indiscernible] tax rate.
On a full year basis, the lorry hire cost is around 7%. Even last year, also in FY '22, it was around 7.4%. Nowadays, 7.3% on a full year basis. And even if you see the quarter-on-quarter, the lorry [indiscernible], in Q3, was 7.2%. Now it is 8.63% in the current quarter. So [indiscernible] 8.6%.
So going ahead in FY '23, are you expecting that this number would be sub 6% or 5% given that we'll be operating more of our own fleet? Is that how we should look at it?
Yes, definitely, it will be in the range of around 8%, around 7% to 8%.
In FY '23 as well?
Yes, because, see, once the volume starts going again, we have to depend on outside vehicle also.
Okay. So effectively, I think the benefit of the newer fleet would come in with -- I was wondering that the margin expansion because of the newer fleet would be because of lower lorry hire cost. Is there any other driver which can bring down the -- sorry, improve the margins for us?
Definitely, we are hoping that the margins will be in the range of, say, 19% to 20% [ in those ] consistently. Basically, even if we add a new vehicle, yes, to some extent, the maintenance cost will be lower at the initial period of time. But we have to seize on the diesel price momentum and other kind of things also. And we are taking very conservative steps on the rates increase.
Even though such movements have happened in the last year from the -- from the month of March, even in April of the current quarter. So basically, we have not taken any rate hike and we are more concentrating on the volume growth. So the moment volume growth will happen, obviously, certain expenses as a percentage to the revenue will come down. That's what actually even we have seen Q3 and Q4 of this current FY '22.
So even though fuel price was at a peak level, we have not taken certain further hikes in the price rise. But in spite of that, we have maintained the margins. So similarly, that trend is continuing. We want to maintain that trend. So unless there is a substantial increase or something has happened.
Understood. And last question for me, if I may. The branch addition, that was in FY '22, we added about 95 or 91 branches. Any target on FY '23? Or over the medium term, what would be the extent of branch addition? Because we have rationalize our branches over the last 2, 3 years before FY '19 to FY '21. So just wanted to see how the addition will come to the fore.
Yes, definitely, we are planning to add another 100 branches in the current year, FY '23. And most of these branches will be in the north and eastern part of the country. And basically, now, what we are accommodating earlier to reach a breakeven of new branches in the East could take a very long time. It could take around, say, 8 to 12 months. Now by opening up of new branches within a period of around 2 to 3 months, we are reaching a breakeven.
And even those contribution, the new branches are contributing good in overall tonnage. So in the current quarter also, the tonnage contributed by the new branches is around 4% to the overall tonnage.
So 4%, is it?
Yes.
Okay. Okay. And this will be all own branches, not through agencies?
Yes. These are all precisely own branches because we are seeing some limitations in the franchisees. And that's the reason, actually, we are planning to open our own branches.
The next question is from the line of Alok Deora from Motilal Oswal.
Sir, just wanted to understand, we have sold 1 aircraft in Q4 for some INR 9 crores. What is that, sir?
See, we were owning around 2 aircraft. So these are the small aircraft which we used to transport the -- for the management [ process ]. And we have our time permits. We used to take the outsiders also. So instead of owning the 2 aircrafts, now we sold 1 aircraft. The 1 aircraft will continue.
Okay. Okay. And this wind power sale, wind power business sale, what's the status on that? It's been like completed? What the funds and just what is the status on that, sir?
Yes. We have signed a MOU with one of the company here, Ratna Cements, based out of Karnataka itself. And the total consideration for this transaction is around INR 48 crores. The buyer has already placed around INR 2 crores as an advanced consideration. And this transaction, we are expecting that by end of July, this transaction is going to be completed.
And moreover, again, what will happen even in FY '23 also, see, in wind power, the major goods season will be in the Q1 and part of the Q2 also. So we are going to realize that revenue. Until the date of cutoff date, the revenue is going to accrue to the company.
Sure, sure. And what's the CapEx we have done for FY '22 and in Q4?
The total for full year basis, we did around INR 195 crores. And -- just one second. in Q4, we did around INR 58 crores.
Sure. Actually, this is slightly higher than what you have been indicating. So just wanted to understand on that -- so any...
Out of this INR 58 crores, the major of the CapEx is for the Goods Transport segment. We invested in Goods Transport segment around INR 43 crores. And for the purchase of vehicles, around INR 41 crores. And for Bus segment also, we invested around INR 10 crores in quarter 4.
So we have added some buses also?
Yes. Those are all in pipeline, but the registration have been happening in Q1 of this [indiscernible].
Got it. Got it. And sir, just last question from my side. We have generated very decent operating cash flow in FY '22. So with this INR 560 crore CapEx in next 1, 1.5 years, so a lot of it will be -- we are planning to do from internal accrual as well. So what is the debt number -- what could be the debt number like in FY '23 and then FY '24 end, after this CapEx is completed?
So currently, we are having a net EBIT of around INR 120 crores even after incurring of a CapEx of around INR 560 crores over the period of next 12 to 18 months. So every quarter, we are going to generate at least around INR 80 to INR 100 crore cash flows. And predominantly, these cash flows will be used for the purchase of vehicles [indiscernible] with the CapEx. So on a full year basis, definitely for this Q4, for the 4 quarters, definitely at least around nearly around INR 400 crores cash flow [indiscernible]. To that extent, completely, it will be -- after Ind AS adjustment, it will remove, then definitely the net cash flows in the range of -- at least in the range of around INR 300 plus growth CapEx, these cash flows.
INR 300 and next year, half year also around INR 150 crores, around INR 250 crores. So net debt will be increased. Even for a 18-month period, we are expecting around, say, INR 100 crores, INR 150 crores debt will increase. Not beyond that.
So on a full debt basis, for example, today, we are INR 120, so it may reach around INR 220 crores to INR 250 crores even after this CapEx. Yes.
Got it. Got it. And any of these new CapEx already that trucks have been purchased? Or -- because we understand that the order you have already given out to Tata Motors, for example. So in April and May, has any fleet already come through in the system? Or it's still in the WIP stage?
Look, the deployments have been started even some of the vehicles got registered in April and May. And most of the fundings have been done through internal approvals. Whereas there is no further [indiscernible] has been borrowed.
Okay. But fleet has already started to come in?
Yes, yes, started.
The next question is from the line of Vikram Vilas Suryavanshi from PhillipCapital.
Yes. I think one question you answered, but I just want to reconfirm. Even in bus, we have seen addition in bus segment and number of buses debt-free are almost 0. So even in bus segment, new buses are completely for internal money we have bought or that I just wanted to reconfirm [indiscernible] presentation?
No, we borrowed a little debt for the purchase of buses. It's hardly around a very small number in the range of around say INR 1 crore or INR 2 crore as of today.
Okay. And we usually used to buy most of the fleet from the Ashok Leyland, but we have seen quite a shift towards Tata. So is there any -- can you explain the thought process behind that or...
So these are all based out of our technical evaluation. And even, as you know, before buying the vehicles, we do a lot of technical study and how these vehicles are going to be utilized in our system. See a lot of things matters, especially the rate of the vehicle chassis, the length of the chassis, and how we have to structure the body design in our own facilities. And apart from that, we have to see the mileage point of view. And even support after the purpose -- after the purchase, we are expecting a lot of support from these OEMs? So considering all these criteria, actually we place orders with Tata this time.
Okay. Are we including that OEM, typically, we carry more maintenance in-house, but since this is a new fleet, will this be taken care by Tata or the third party or even for Tata -- maintenance will be carried at in-house?
No, we are going to carry the maintenance part, but only the spare parts supply and all the [indiscernible] Currently, even the whatever Ashok Leyland vehicles we are having, for all the spare parts supply -- Ashok Leyland store spart parts [indiscernible] Similarly the Tata is also supporting lot. And moreover, there are goods in certain kind of things like warranty period on certain spare parts and all in the new vehicles. These are all better in case of Tata, this time. For example, engine warranty period. They are assuring a good time of warranty period. And similarly, they are giving a lot of flexibility to us to incorporate certain modalities at the time of chassis manufacturing.
These are all matters.
Understood. And you gave this lorry hire percentage, 8.6% for this quarter. Will it be similar to in terms of outside vehicle kilometer also? Or is there any slightly difference in that?
the kilometers is deferred because.
What would be that number for this quarter?
The hired vehicle kilometers in Q4 it is. Yes, overall, the kilometers earlier, on a full year basis it was around -- you want percentage of -- to the total kilometers?
Yes, sir.
I will come back to you on this.
The next question is from the line of Ankita Shah from Elara Capital.
Congratulations for good performance. Sir, I wanted to understand how do you account for scrappage of vehicles, whenever you sell, is it accounted as revenues or how is the accounting then?
These are all totally depreciated now. There is hardly 5% original value we retain as a residual value. And at the moment, we scrap these vehicles, for example, wherever we find some of the useful parts, tires or any spare parts, we just [indiscernible]
Sorry to interrupt you. This is the operator. Sir, the audio is not that clear from your line. Please check.
Is it clear now?
Yes, sir. Thank you.
Yes. Basically, see what will happen in these vehicles always we depreciate over a period of 9 years. So these vehicles are fully depreciated, and 5% of the original cost, we'll keep it as a residual value. So -- the moment we decided these vehicles to be scrapped, the whatever useful spare parts of the vehicles, we will take it as a inventory at INR 1 value. And whatever the sales will be there. See, out of other than the useful spare parts, whatever things will be there, we sell it as a scrap. Then again, it will be allocated to the each vehicles. Then we arrive the profit or loss for each vehicle or whatever it is. But always whatever 5% residual value will be there always it will be more than that. The value what we are fetching out of the sale of the scraps.
So that gets added to the revenue from the vehicle segments?
Yes, yes. It will be added to the vehicle segment.
So overall, this share would be -- how much percentage of the total duty revenue?
It is very negligible. If you see the total scrap valuation, the other income. It is hardly in the range of around INR 3 crores to INR 4 crores on a full year basis.
Okay. Okay. Got it. Secondly, sir, on the strong growth that we are targeting of 20%, 25% in terms of [indiscernible] What are the levers and where this growth will come from?
In terms of the growth in the tonnage.
Tonnage growth, yes of 20%, 25% going forward in FY '23 onwards.
Yes. growth, there are 2, 3 things. One is a small fleet operator because of change in the regulatory point of view, a lot of shifting is happening from unorganized players to organized players. And apart from that, we are expanding the network also. In FY '22, we added around 91 branches. And similarly in FY '23, we are going to add another 100 branches. And if you see, overall, the number of customers prior to COVID, we used to handle around 4 lakh customers across our goods transport segment. Now that number of customers have been increased to around 700,000 in the current year. So going forward also, these are the 2 things. One is the shifting from the unorganized to organized. And other than that, whatever the network expansion we are doing, we are going to add a lot of new customers in untapped market as well. These are the 2 things actually, we are seeing that we'll add a good growth in our tonnage.
Sure. In terms of industry, any particular industry that you think will contribute hire?
Industry-wise, see, normally, we are not specific on any industry or something like that. But area-wise, wherever the products are available. So for example, if we are entering into the West Bengal market. So we study the local products over there, and we study how the movement of the goods are happening, and we [ start ] those markets.
And similarly, just I have mentioned some of the goods in my initial remarks about the change in the leather products, how it has been drastically improved from FY '19 to till date. And similarly, some of the leather products, which are mainly -- we are getting from the UP, especially the Lucknow, the UP area, Kanpur and surrounding area. So there is a substantial improvement in the tonnage that difference has been already mentioned in the initial remarks. So some of these products -- earlier these products seems to handle completely as a unorganized operator? Now this is shifting to organized player?
Got it. And just 1 last, is there any thumb rule on how much cost savings did you do on own vehicles versus hired vehicles? Percentage of cost savings on own vehicles?
Own vehicles, the EBITDA margin, if we do through outside vehicles, it is in the range of around 8% to 9%, whereas if we do with our own vehicles definitely, it will be around 20%.
[Operator Instructions] The next question is from the line of Krupashankar NJ from Spark Capital.
So just 1 small question on the wind segment. I noticed that in this quarter, the revenue as well as the margins on the wind segment has been substantially higher. And traditionally, this has been a very weak quarter for the. Just want to understand, is there any one-off accounted in the revenues and that's one of the reasons why [indiscernible].
Yes, in wind power the onetime revenue of around INR 6 crores, we realized on account of sale of this carbon emission reduction unit, CR unit. The onetime income is generated in this quarter.
So that onetime is due to sale is recorded on the revenues?
INR 6 crores, yes.
Okay. I understood. That's all for me.
Yes. Yes. Just I want to mention about this kilometers covered by the outside vehicles. So overall, it is in the range of around 5% to 6% of the kilometers are covered by the outside vehicles.
We have the next question from the line of Rajarshi Maitra from InCred Capital.
You have mentioned that you have sold 1 aircraft for INR 9 crores. So is this amount booked, and if so where has this been booked with income from sale of aircraft?
Yes, it has been booked in the current quarter. So around INR 2 crores profit has been generated from this aircraft that has been considered in the P&L account. The cost of this aircraft in the book was around, say, 6 or -- and odd. So by doing this transactions, we made a profit of around INR 2 crores.
As there are no further questions from the participants, I now hand the conference over to Mr. Sunil Nalavadi for closing comments.
Thank you all participants for your patience. If any additional questions or any information is required, please contact to me directly. And just I want to conclude that basically considering over the growth in the tonnage in our goods transportation segment, which is an -- segment for us. We are expecting that, that growth momentum will continue even going forward. The more volume growth, if it is there, then definitely we'll have a more flexibility about the cost control and increasing the EBITDA margins. So considering the increase in the fuel cost and other scenarios, definitely, we are hoping that, again, we will maintain the EBITDA margins as well at the same level in the coming days. So with these remarks, I would like to conclude this call. Thank you.
Thank you. Ladies and gentlemen, on behalf of VRL Logistics Limited, that concludes this conference call. Thank you for joining us, and you may now disconnect your lines.