V-Trans, this fiscal is looking at around 40 per cent top-line growth at Rs 1,500 crore on the back of the economy getting back to normalcy even though rising fuel prices and competition from unorganised players are a concern.
V-Trans closed FY22 with a revenue of Rs 1,136 crore from which it earned a net margin of 5-6 per cent, while it registered Rs 960 crore revenue in FY21. It has set a target of crossing the Rs 1,500 crore revenue mark this fiscal, Mahendra Shah, MD & CEO, V-Trans said, basing his optimism on the growing demand from across the industry.
Spiralling fuel price along with rising competition from smaller players has become a reason of concern.
The diesel prices for trucks have gone up by almost 35 per cent since March, however, operators are unable to pass down the cost inflation to end consumers due to the competition.
Since almost 80 per cent of our truck contractors and customers are there for decades, it is not easy to fully pass on the operating cost to them. Also, truck rentals is a very competitive business. We can charge a better premium and full cost pass-on only from the remaining 20 per cent business as they are spot demand, he explained.
Giving a break-up of the revenue from the three verticals, Shah said V-Trans chipped with Rs 880 crore last year and hopes to make Rs 1,050-1,100 crore this fiscal; V-Express contributed Rs 245 crore and should touch Rs 300 crore this financial year; and V-Logis, which fetched Rs 35 crore last year, should be crossing Rs 100-crore this fiscal.
The company has began working on an initial public offering over the next two-three years and has already appointed a CFO and a few board members for this.