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Varun Beverages share rises over 5% on strong Q1 earnings

Varun Beverages share touched an intraday high of Rs 1055.4 rising 5.15% against previous close of Rs 1,003 on BSE

Varun Beverages share rises over 5% on strong Q1 earnings

Varun Beverages stock has gained 7.21% in the last 3 days.

Varun Beverages share rose over 5 percent today after the company reported strong earnings for the quarter ended March 2021(Q1) and board's approval for bonus share issue.

The stock touched an intraday high of Rs 1055.4 rising 5.15% against previous close of Rs 1,003 on BSE. Varun Beverages stock has gained 7.21% in the last 3 days. The stock opened with a gain of 2.56% at Rs 1029.35. The large cap stock has gained 62% in one year and risen 9.42% since the beginning of this year.

Market cap of the firm stood at Rs 28,948 crore.

Consolidated net profit jumped to Rs 136.7 crore in Q1 against Rs 60 crore in the corresponding quarter a year-ago. Revenue rose 33.6% at Rs 2,270 crore against Rs 1,699 crore, YoY.

Earnings before interest, tax, depreciation and amortisations (EBITDA) was up 40.8% at Rs 381.6 crore and margin was at 16.8 percent.

The company board approved the bonus share in the ratio of 1 equity share of Rs 10 each for every 2 existing equity shares of Rs 10 each held as on a record date. The share hit a 52-week high of Rs 1,095.85 and a 52-week low of Rs 571.60 on 23 February, 2021 and 22 May, 2020, respectively.

"PAT (Profit After Tax) growth was driven by higher revenues, improvement in margins and higher profitability from international operations," the company said in the filing. Repayment of debt as well as lower average cost of borrowing resulted in reduced finance cost, which further aided PAT growth, it added.

Varun Beverages Chairman Ravi Jaipuria said from a demand standpoint, it saw a notable recovery in the domestic markets in the first quarter. "We have started the year 2021 on a healthy note delivering progressive performance across parameters in Q1. The company registered a strong volume growth of 33 per cent YoY (Year-on-Year)," he said.

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