Varun Beverages share price jumped over 5 per cent in morning trade on BSE on Tuesday, May 14, buoyed by the company’s impressive March quarter (Q1) earnings. Varun Beverages share price opened at ₹1498.15 against its previous close of ₹1477.80 and jumped 5.5 per cent to the level of ₹1558.45.
Varun Beverages Q1 result
In an exchange filing during market hours on Monday, May 13, Varun Beverages said its profit after tax (PAT) for the first quarter of the calendar year rose 25 per cent year-on-year (YoY) to ₹548 crore from ₹438.6 crore in the same quarter last year, driven by volume growth, increase in net realisation and improved profit margins.
Net revenue climbed 11 per cent YoY to ₹4,317.3 crore in Q1 against ₹3,893 crore in the corresponding quarter last year.
Gross margins improved by 385 bps to 56.3 per cent from 52.4 per cent YoY, primarily due to reduced PET prices and the focus on reducing sugar content and light-weighting packaging, the company said.
EBITDA for the quarter under review rose 23.9 per cent YoY to ₹988.8 crore from ₹798 crore in the same quarter last year. EBITDA margin improved by 240 bps to 22.9 per cent in Q1, led by higher gross margins and increased realisation.
The company highlighted it saw an improvement in EBITDA margin despite the rise in fixed costs associated with the acquisition of new territories and commissioning of new greenfield plants for the season.
Additionally, Varun Beverages announced the appointment of Rajesh Chawla as the Chief Financial Officer (CFO) and a Key Managerial Personnel (KMP) of the company from May 14, 2024 after the resignation of Lalit Malik as the CFO and KMP of the company on May 13, 2024.
(More to come)
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Published: 14 May 2024, 09:34 AM IST
