Patel Integrated Logistics Ltd (NSE: PATINTLOG) Q3 2025 Earnings Call dated Feb. 06, 2025
Corporate Participants:
Mahesh Fogla — Executive Director
Analysts:
Vikram Suryavanshi — Analyst
Majid Ahmed — Analyst
Ankur Savariya — Individual Investor
Presentation:
Operator
Ladies and gentlemen, good day and welcome to Patil Integrated Q3 FY ’25 Earnings Conference Call, hosted by PhillipCapital. As a reminder, all participant lines will be in listen-only mode and there will be an opportunity for you to ask questions after the presentation concludes. Should you need assistance during the conference call, please signal an operator by pressing star then zero on your touchstone phone. Please note that this conference is being recorded. This conference call may contain some forward-looking statements about the company, which are based on the beliefs, opinions and expectations of the company as on-date of this call. These statements are not the guarantees of future performance and involve risks and uncertainties that are difficult to predict. I now hand the conference over to Mr Vikram Suryavantry from PhillipCapital. Thank you, and over to you, sir.
Vikram Suryavanshi — Analyst
Thank you,. Good evening and very warm my to everyone. Thank you all for being on the call of Patel Integrated Limited. We are happy to have the management with us here today for question-and-answer session with the investment community. Management is represented by Mr Mahesh Pogla, Executive Director; and Mr Avinash Palraj, Company Secretary. Before we start with the question-and-answer session, we’ll have opening comments from the management. I will hand over call to Mr Mahesh for opening comments. Over to you, sir.
Mahesh Fogla — Executive Director
Thank you, Vikran and his team for having this call. A very warm welcome to all who have taken time from their busy to make it convenient to attend the call. I thank all of you. Let me first give the financial numbers with some highlights of the financial numbers and then I will go into some operational things also and the budget announcement which happened in the very last week only, that is the way I will explain the thing. So let me first view the financial numbers. So our cross office and income in the — this quarter is INR105 crores, 88 lakh compared to 99 lakh 99 crores — sorry, INR99 crore, 38 lakh in the immediate last quarter. So quarter-on-quarter, there is an increase of 6.54% the quarter-on-quarter increase in the gross operational income, including GES T — of 6.54%. And in the same quarter of the last year, gross operational income was INR90 crore INR63 lakhs and year-on-year increase of 16% 16.83% that means almost 17% increase on year-on-year on gross operational income. So going by the nine-month figure of cumulative Nine-Month figure, we have a cross operational income including GST is of INR302 crores of around INR16 lakh, INR302 crores and 16 lakh against Nine-Month of the last year of INR2 — INR241 crores, 54 lakhs of 300 — again the nine months INR302 crores, 16 lakhs, we have achieved again the last year of INR241 crores, INR54 lakh, giving us increase in AUM nine months-to Nine-Month of 25%, 25%. And if accordingly, the EBITDA — EBITDA of we are getting EBITDA of two-quarter to quarter, let me first explain that this quarter we have achieved EBITDA of INR235 lakh against the last quarter or immediate last quarter of EBITDA of INR219 lakhs giving us the increase in EBITDA of EBITDA in the last quarter of the same quarter of the last year was INR2 crores INR7 lakh. Hence in this quarter, we have year-on-year increase in the EBITDA, quarterly increase of EBITDA of 13.54%. So a similar Nine-Month figure of EBITDA of the last current year reached to INR60 crores 68 lakhs, INR6 crores, 68 lakhs again the Nine-Month of the last year of INR6 crores 32 lakh, giving us an increase of the 5.75% this year Nine-Month cumulative EBITDA reached INR6 crores INR58 lakh. Now coming further to the profit — after tax profit-after-tax, we have in this quarter our quarter under review, I mean quarter under review. In this quarter, which I mean always it from October to December quarter which where we have published the results today only. We have a PAT profit-after-tax of INR2 crores INR17 lakhs 2 crores INR17 lakhs compared to immediate quarter of last year of last — immediate quarter of the last quarter of this year only. In the immediate quarter of this year only last immediate quarter, which I mean by July to September of INR2 crores 3 lakh, giving us quarter-on-quarter increase in EBITDA of 7.30%. So we have in the same quarter of the last year profit-after-tax of INR1 crore INR49 crores and in year-on-year increase in the PAT, quarterly PAT increased 46%, 46%, I repeat. Nine-Month cumulative profit profit-after-tax is INR5 crore INR5 crores, INR74 lakh against nine months of the earlier against nine months of the last year of INR3 crore 87, giving a profit-after-tax increase of 48.30, 48% increase in the PAT of nine months-to nine months year-on-year. Accordingly, our earning per share, EPS increased by our EPS for this quarter the 33 per share last quarter of this year were 31% giving an increase in EPS of 6.45%. We have EPS in the same quarter of the last year was 23 out, giving an increase in the EPS of 43.48%. Increase in the EPR on year-on-year quarterly basis is 43%. And accordingly, Nine-Month EPS, Nine-Month EPR in this financial year, we have 86 PASA, 86 per share. Compared to the last nine months of the last year, we have a 50, 60, giving us increase in EPF of 43.33%. These are the financial number of which we will give us increase in quarter-to-quarter, also a linear two year. Now let me come to the some operational things which we’ve done in the last few months. First of all, we are a company which wants to play very prudent and conservative, although not ignoring the growth mindset. Hence, as a part of risk control make, we have implemented in our company the system for their outstanding, outstanding, debtor outstanding control which I — what I mean by that now there will be no manual intervention if any debtor is going beyond the credit period approve that per the contract, it account is or her account will be get blocked and only after getting the money or as it after the very premier management intervention, these account will get unblocked. So it will definitely work-in a very — it is a game-changing approach for us to control the debt outstanding because we don’t want debted outstanding to increase or achieving the turnover and it will impure all ground discipline in our — all the more than 100 location all over India to impure financial discipline as well as look for the new customers and now that we return on some customer and continue to do the activity. We are a proactive company and we want to take a proactive approach always. As I was mentioning last-time the freight we have launched a mobile app. We have launched a mobile app in the name of Freight tool. So yes, this mobile app got stabilized in this quarter now. And now as a part of that, virtually now all bookings are done through the mobile app only and there is no manual bookings. Hardly very, very few, which will also get reduced at the time progresses. The 99% things are happening in the system only. So this will also help in preventing an indicated ways that this will help in preventing an indicated. And as a part of digitalization measure, we want to be in the forefront. So in our industry, I think probably we are the one of the best one of the cut company which implemented this measure. Correct. Now however, after implementing all this also, we as we can see we are in the increasing in the turnover also happening, our profits are also happening. So it’s not that we — for the sake of control, we are the growth only. We are fully aware of the growth of the business. So let me — before going further, let me give you some more operational data about load of the load we achieve in this load I mean volume in our business, how much load lower we achieved in this quarter compared to the last quarter and last year. We have — we have a two type of business, one is that we call ourselves as a domestic business, domestic business and another international business. Just to explain somebody who joined first time in our con-call, although I may have explain in earlier con-call also, domestic means a good movement within the India. And international here we mean by that’s a good boot out-of-the country because in the domestic we have a load or the volume of the big quarter of 12,210 to, 12,210 and again the last year or again the last immediate last quarter of 12,784, okay. And international, we have it against in 2,165 tonnage, 2,165 tonnage in this quarter, again at last quarter of 1,939 giving us the total tonnage of 14,376 again the last immediate last quarter of 14,724 ’24. And this — it small dip in the volume, if you can see the quarter the impact because the Nine-Month figure, if I go by Nine-Month figure, there is an overall increase in the volume also. I will go come now come back to the Nine-Month figure. Nine-Month figure in the load volume is yeah, 37,611, 37,611 tonnage in nine months against the earlier Nine-Month of 36,983 in the domestic front in the international front pardon me my thought is not going well so I may not be able to if anything clarification required I will — it’s just you can ask me anytime, if anything not clear to you. International load we have for the nine months 2023 compared to earlier Nine-Month of 4,970. Hence on domestic plus international community, we have 43,000, 43,635 for nine months ended 31st December 2024. So we have achieved a volume of 42,635 compared to nine months — months — earlier nine months of 41,953, okay. So we have an increase in the increase in the volume also of — from 41,953 to 43,000 to 35. Yeah. Now let me apart from the numbers, let me now talk about something else also not to go with number guy number fully as we all know that government had announced the budget in the as early as on February 2025. Our honorable finance has also mentioned that 120 new location will be connected by this will be definitely have a huge positive impact on our operation as we are a pan-India company. And wherever the cargo fabulating in the airport will be there, by default, we will also be there. It will definitely increase our network and our operation, our scale of operations and overall definitely all this are will lead to the increase in our revenue and as well as a load cost because if everything increased because we are a major player in our area of restaurant and if any, any network increase is there, we will also get benefited. We already have a more than 100 and if 120 more are getting added up, it will definitely as you can see by number, it will give a huge positive impact to our think. Further, continuing with the premium budget. As we all know, hitting sitting industry has been already given a infrastructure pattered in this budget. We are all very much confident that similar will be given for the aviation tax also. Aviation sector is also one of the pillar of infrastructure and government is very bullish about the IVSM. They are coming out with new airport in that they are as you know, announcement was clear. We also in our our location where we are sitting now Nou Mumbai International Airport is coming up. This will definitely increase the overall movement of goods through here in the and we are definitely will be getting our share of and being a public player and being a very old player in our area of operation, it is expected that we will also get benefited by this further in one of the 4th budget interview, our honourable Indian finance minister Minister mention in one of the port budget interview that Indian government is okay to bring turbine fuel ATF under GFT so why? Why the significant turbine fuel, as we know it is very major component of the aircraft operation. Around 30% to 40% of the cost of operation come is up on ATM. And if it come under the GST, then definitely the cost of operation come of the aircraft come down during the overall efficiency in the in the areas and sector and improve the profitability of the all people. However, the work to working that the state government who are also member of also have to agree for bringing the GFT under the — sorry, bringing the APF under GFP and which we think that all government — all the state government, all people in the country now want the growth. So sooner or later, the APF will also come under GFP and we are expecting that will further benefit to the growing hyper-growth sector we are handful to the Indian Finance minister that they have reduced the income tax-rate for all people. This will definitely lead to the increase in consumption and this will definitely lead to higher disposable income in the end-of-the hands of the people in with higher disposable income there will be more inclusion consumption or the travel requirement or the savings which will give the further more benefit to the economy and as the consumption increases, there will be more movements of the good. If there is a more movement of both like electronic boat or something else, which will move by a year also there more movement of good through the year and we being a pan-India company. We are very confident that we will also get benefited by this so we have a very positive outlook for this for our as well as our company and for the ideal sector. And another positive thing which I want to share with you all concerns that we have a — we had a demand we had not had a demand of GFT of INR33 crores, which I’m happy to say has been dropped as early as yesterday on the 5 February 2025 completely dropped. So this will now help us in focusing our energy and our capital for investing in the new or whichever or whatever other area where return on capital will be higher, this will help us will not only depend on the air-freight business, it will also ourselves from the — only depending on the air-freight business. We are very actively considering that we will definitely have Air project, but we want to increase our new vertical also. So there will be a growth from both the verticals as I was earlier telling that we have a property car there which there is in this quarter also the development happened only the — as I not talk much before final agreement, it has to be signed. But this type of things take the time. But when it happens, it will happen definitely in a very good way. If are in advanced-stage, we are actively pursuing how to monetize our non-core assets. And I hope in very soon I will be able to give you some news on that account also. Things are looking at the economy is growing and as the favorable union budget we all are expecting that things will be looking a very, very positive way. For the RLP, we — as you know, we also have a very sizable realty. So for budget, ALC also given a benefit only, positive for the real. Overall, this is also beneficial for us. By this, I conclude my. Very happy to clarify anything which I.
Questions and Answers:
Operator
Thank you very much. We will now begin the question-and-answer session. Anyone who wishes to ask a question may press star and one on their touchstone telephone. If you wish to remove yourself from the question queue, you may press star and two. Participants are requested to use handsets while asking a question. Ladies and gentlemen, we will wait for a moment while the question queue assembles the first question is from the line of Majit Ahmad from Tradewalk Research. Please go-ahead. MR., your line has been unmuted. Please go-ahead with your question. So we are — sir, you’re not audible. I would request you to please use your handset. Sir, I would request you to make a little louder.
Majid Ahmed
Yes I hope I’m audible with the management. I think we have very good quarter. So my first question that I have is that you are saying that you are looking to invest in high ROC businesses. So which segment are you listening to you? Certainly quite. Can you repeat again? Yes, and what are you talking
Operator
Interrupt, sir, your voice is not clear. We can’t hear you yes, yes, sir, please continue. No, sir, we can’t hear you. Ladies and gentlemen, we have lost the connection of the current participant. We will move on to the next participant. The next question is from the line of Ankur Savaria, who is an Individual Investor. Please go-ahead.
Ankur Savariya
Good evening, sir. My first question is that even though our revenue is increasing, how come our operating margin is not increasing? It is going down it was about 5% at one point of time and now it has reduced to about 2%, 2.5%.
Mahesh Fogla
Yeah. Correct, we are aware of that one. It more happen as you can see that there are two product mix. One is the domestic one is the international. International, although money come very fast, but margins are lower. And so we are aware of that one. So we are now thinking of changing our product mix further again to focusing more on the domestic so that our product margin can improve. Yes, I agree with your point. Thank you for — you already have the is correct. That’s correct.
Ankur Savariya
My second question is, sir, even though some of the promoters have sold their shares in this quarter, how come the promoter share has increased and this is something I am not able to understand that during the quarter shareholding of the promoter is showing us more than last quarter, but the promoter has told during this quarter,
Mahesh Fogla
Yeah. Yeah, yeah. Between October to December, we have a right to where promoter have subscribed more than their quota, okay,
Ankur Savariya
Okay.
Mahesh Fogla
For that reason, they have got a holding and then they have sold some fare, but definitely the system was much, much higher and net-net, they have increased their holding.
Ankur Savariya
Why is the promoters selling again and again, sir for last two, 3/4?
Mahesh Fogla
Look, there was some feeling. I agree with you. I’m not denying your point, but there was some at the same time, if you see promoter in more money than they sold, correct?
Ankur Savariya
Yes, sir,
Mahesh Fogla
Yeah, and there was some personal requirement or the promoter was there and for that, they sold some. I agree with you. But at the same time, I’m not expecting now, but I will not be able to comment much on that one. But my expectation now that there will be not much further will be there.
Ankur Savariya
So what do you foresee, sir in next two to three years where do you foresee the company to go sir?
Mahesh Fogla
Company to grow, grow, grow, nothing else I have the same vision like you to grow, grow, grow the company.
Ankur Savariya
So even we are hoping for the same that the company grows. The only thing that. So what I see is that, again, I am repeating myself for last quarter I said the same thing that we know value-wise the company is far more valuable than the market cap as of now.
Mahesh Fogla
We all know. Yeah, yeah.
Ankur Savariya
The market always give value to the company that is growing. So value-wise we are okay, but growth-wise we are not okay. So as a shareholder, what we — what we envision is that the company grows far more so that the shareholder also gets something out-of-the share price or the dividend. But dividend is too less. That is why we want that the share price should reflect in the value of the company.
Mahesh Fogla
Yeah. Look, you are fully correct, what is in our fair price, but not only in our control, as you know also. Now all the small-cap, nano cap, whatever maybe you could talk about, all have their care of the brunt. But what is in our control is that the company to grow the company to take the — whatever the non-core asset, how to monetize that in our hand, which we are — I told last quarter also. This quarter also further movement happened, but still the agreement gets signed, it’s difficult for me to tell anything to you guys. But yet I can assure you we are working on that direction only.
Ankur Savariya
Thanks a lot for answering my question, sir and best of luck for the future.
Mahesh Fogla
Thank you. Thank you. Thanks a lot.
Operator
Thank you. Ladies and gentlemen, you may trust star and one to ask a question. The next question is from the line of Vikram from PhillipCapital. Please go-ahead.
Vikram Suryavanshi
Yeah, good evening, sir. Before I ask my question, I think the earlier participant was trying to ask the question. His question was, since we are focusing on high ROCE business as well as the new business opportunities, our question was regarding which could be the new business areas we can focus going-forward.
Mahesh Fogla
Yeah, correct. What the objective is that what I mean by that. We are right now more or less partly in the — more or less majorly in the B2B, okay. So we are like — we will be going by our logistic sector or the warehouse of — I’m not telling about the company, we will go by unrelated sector, but there also we will go more into the B2C instead of B2B where definitely margins are higher. That I mean by that
Vikram Suryavanshi
Okay. Okay. And how is the development of this Pune location and if you can give some further update on that?
Mahesh Fogla
Yeah, yeah. Definitely very optimal with you. And as I was mentioning that we unfortunately got in the middle of the roadblock of GST that roadblock got removed from that yesterday only. Okay. Now we have a — now we can — that capital — because regulatory compliance was to free. Now that capital got free, now we can again actively look into our fully.
Vikram Suryavanshi
Okay, understood. And in terms of obviously, we have grown on nine months, but you rightly said that the Q-o-Q or domestic was seasonal impact, but is it also seasonal — apart from seasonal competition impact because somehow we see overall volume growth is not that high. So is it like an industry phenomena or is it a competition? And also there is a bit amount of margin pressure. So if you can talk about some competitive intensity and how we are able to grow market-share going-forward or what kind of growth rate we can look in terms of volume.
Mahesh Fogla
So yes, we have a Nine-Month to Nine-Month growth in the volume definitely. Quarter-to-quarter, there is a small there, okay. But at the same time, I can assure you that, yes, we are also a more or less leader of the economy also as we were all think that the economy were little slowed down which had been now — has been corrected also by our — by the budget also momentum and everything will pickup. So we have not lost our market-share just to tell you frankly correctly because things are there, we are very focused on our market-share and all this one and as the location gets improve and things get improved, a number of locations get increased and consumption get increased, this volume will come back again and definitely — and we are expecting the growth in the volume only.
Vikram Suryavanshi
Okay, got it. But is there any way we can increase the market-share and really do much better growth rate and demonstrate that in volume going ahead? Obviously, everyone will have expectation of growth, but how we can bring it into reality, is there any way we can work-in terms of market-share gain or some strategy?
Mahesh Fogla
Yeah. We are internally also discussing we have just to tell you right now also double-digit market-share in our area of operation. Okay. So it’s not that we don’t — we have a major player of market-share, so double-digit in the industry, which is very competitive industry and we are having double-digit market player is also not something a very hard to be looking — have to be considered also. That’s the reason. One thing is that we are expecting the overall pie will increase. Another thing which we are doing, as I were mentioning you, we want to — apart from the turnover, we are also looking into how to increase our margin. And just now your previous speakers also talk about a and we are very much focusing on the margin, how to increase the margin. And load will come between load is not a challenge, but to pick-up which load sometime become a challenge because in the market what will happen, this type of industry, everybody — the winning to give the load-in a — in the credit period, high credit period, everybody will give the load. But we don’t want to take that one. We want to be also the prudent enough to choose which one to do and which one not to do because we are looking for a long-term sustainable growth and not a cut measure. So definitely the things are looking good and we are in the director only. That’s why we are also apart from the B2B, we are looking into B2C okay.
Vikram Suryavanshi
Got it. And lastly from my side, in terms of margin improvement, we do understand that as the economy picks up, volume pickup margins will improve. But is there any possibility for further cost optimization or efficiency gain to improve margin or it will be more based on the volume growth going-forward as well.
Mahesh Fogla
What about the top optimization on working capital management, as I was mentioning in my remarks, we have implemented a software to may received a discipline all over India. Because we know customer will — sorry, not at the cost of because humbly telling customer will come to us for some time they delay impairment and all this one, which will block our working capital, which further — because we are not taking any new loan, as you know, we are a net debt-free company now. So we are also in the focus of collecting our money faster, so we can churn our money faster and increase the.
Vikram Suryavanshi
Got it. And what would be your cash balance?
Mahesh Fogla
Cash balance right now, if I go by my cash-flow — flow statutory cash-flow, net-net after loan and everything INR8 crore is already there apart from the subjected investment and all this loans.
Vikram Suryavanshi
Okay. Okay. Thank you.
Operator
Thank you. Ladies and gentlemen, the next question will be from the line of Majit from Tradewalk Research. Please go-ahead.
Majid Ahmed
Am I audible now?
Operator
Yes, sir. Now you’re clear.
Majid Ahmed
Yes. So my first question is, in this current quarter, there has been a classification of a loss of INR45 lakhs. Can you what is it? Is sir Kul? So for this quarter which you had reported, there has been a one-off of INR45.45 lakh rupees. I just wanted to know what is it like, what is it INR45 lakh rupees?
Mahesh Fogla
Where you assuming the results.
Majid Ahmed
Is what this quarter
Mahesh Fogla
For this quarter for 40 — correct, correct. That is actually that is accounting at that moment, what I’m. It is a graduity and lead-in cash-flow. Hello, graduity and lead-in cap provision which are long-term, we always come below-the-line we call this INR45 lakh is basically one only and we have certain investment also companies which mark-to-market we have to do as per the regulation. So that is temporary mark-to-market lots.
Majid Ahmed
So then my second question is that you’re looking for growth and looking for margin expansion. But for us as investors, we need to have a good hindsight of understanding it about what could be the range revenue growth and what’s the possibly of margin expansion? Can you quantify numbers or give a range so that it will be much easier for us to understand.
Mahesh Fogla
As one of your speaker, we talked about that we have right now the PAT margin of 2.5%, correct? Yeah. We are gradually want to increase definitely in — over a period of time, not in a one month or two month or 1/4 or two quarters double it, double it.
Majid Ahmed
Okay to double-digit. Third, the revenue growth, revenue growth guidance
Mahesh Fogla
The revenue growth will be happening also, but to be honest with you, we already got the revenue growth this year nine months-to nine months 25% okay. So revenue growth is not expecting.
Majid Ahmed
Will it be maintained? Is it 25% will be maintained in the coming years? Or will be more?
Mahesh Fogla
We will all try to maintain it. But to be honest, it will come by own, but we are not very much concerned about the revenue project come curve. We are more concerned about the margin expansion now because ultimately the — we are not a start-up company, which will burn the cap, we want to make the money.
Majid Ahmed
Yes, sir, absolutely. Absolutely. All the very best. Thank you.
Mahesh Fogla
Thank you for talking about.
Operator
Thank you. Ladies and gentlemen, you may press star and one to ask a question. As there are no further questions from the participants, I would now like to hand the conference over to the management for closing comments.
Mahesh Fogla
Thank you. I once again thank you all of you who have asked the question or who we are the call for taking out their time to hear the call most of the point I already spoke about in my opening remarks, I can only tell you that yes we have noted their concern and we are very much aware that management is totally professionally managed and every people of the — every staff of the company is very much dedicated to the growth of the company. And we assure you that your things will improve only from now on. Thank you. Thank you.
Operator
Thank you. On behalf of Phillip Capital, that concludes this conference. Thank you for joining us and you may now disconnect your lines.