Varun Beverages Stocks Surge 5% Following Stellar Q1 Results: Is it Time to Invest?

  • Varun Beverages share price saw a significant increase of over 5 per cent in morning trade on BSE on Tuesday, May 14, following the company’s impressive Q1 earnings.
  • The company’s share price opened at ₹1498.15, a jump from its previous close of ₹1477.80, and rose 5.5 per cent to ₹1558.45.
  • At around 9:45 am, the shares were trading 3.13 per cent higher at ₹1,524 apiece, while the equity benchmark Sensex was 0.13 per cent up at 72,874.

Varun Beverages share price surges following impressive Q1 earnings, with the company’s profit after tax (PAT) rising 25 per cent year-on-year. The company also announces the appointment of a new CFO and the incorporation of a wholly-owned subsidiary in Zimbabwe.

Impressive Q1 Results for Varun Beverages

In a filing to the exchange during market hours on Monday, May 13, Varun Beverages reported a 25 per cent YoY increase in its PAT for Q1, rising to ₹548 crore from ₹438.6 crore in the same quarter last year. This increase was driven by volume growth, an increase in net realisation, and improved profit margins.

Revenue and Gross Margins Increase

Net revenue for Q1 climbed 11 per cent YoY to ₹4,317.3 crore, up from ₹3,893 crore in the corresponding quarter last year. Gross margins also improved by 385 bps to 56.3 per cent from 52.4 per cent YoY, primarily due to reduced PET prices and a focus on reducing sugar content and light-weighting packaging.

EBITDA and Margin Improvement

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. The EBITDA margin improved by 240 bps to 22.9 per cent in Q1, led by higher gross margins and increased realisation. The company managed to improve its EBITDA margin despite the rise in fixed costs associated with the acquisition of new territories and commissioning of new greenfield plants for the season.

New CFO and Subsidiary

Varun Beverages also announced the appointment of Rajesh Chawla as the CFO and a Key Managerial Personnel (KMP) of the company from May 14, 2024, following the resignation of Lalit Malik as the CFO and KMP of the company on May 13, 2024. Additionally, the company announced the incorporation of a wholly-owned subsidiary, Varun Foods (Zimbabwe) Pvt. Ltd, in Zimbabwe, with the acquisition expected to be completed on or before August 31, 2024.

Conclusion

Varun Beverages’ impressive Q1 results have led to a surge in its share price, with the company showing strong growth in revenue, profit, and margin. The company’s future outlook remains positive, with new appointments and acquisitions on the horizon. Brokerage firms also remain upbeat about the company’s prospects, maintaining buy calls on the stock.

Don't forget to enable notifications for our Twitter account and Telegram channel to stay informed about the latest cryptocurrency news.
spot_imgspot_imgspot_imgspot_img

Latest News

Bitcoin (BTC) Surges to Record $70,000 Milestone After Prolonged Battle

Bitcoin has recently broken through the significant...

Ethereum (ETH) Poised for $4.5K Surge Ahead of ETF Launch: Market Analysts Predict Bullish Trend

Ethereum’s price nears $4,000, influenced by optimism...

Nifty 50 (NSEI) & Sensex (BSESN) Hit Record Highs Before Closing Flat: Key Market Insights

<ul> <li>Indian stock market benchmarks, the Nifty 50...

Bitcoin (BTC) and Ethereum (ETH) Propel Crypto Market to New Heights: A Surge in Digital Assets

<ul> <li>The cryptocurrency market has witnessed a notable...
spot_imgspot_imgspot_imgspot_img

PRO Analysis

Bitcoin (BTC) Price Drops After Failing to Surpass $69K Resistance Level: Market Analysis

Bitcoin dips 0.02%, failing to breach $69,336...

Bitcoin (BTC) Price Analysis: Bullish Surge Propels BTC Towards $70K Resistance

Bitcoin (BTC) continues its upward trajectory, trading...

GBPJPY Technical Analysis Report: Key Insights for May 27, 2024

The cryptocurrency market continues to evolve rapidly,...

Shiba Inu (SHIB) Rally Hits a Roadblock: Key Insights and Market Analysis

Shiba Inu (SHIB) price action has gained...
Gideon Wolf
Gideon Wolfhttps://en.coinotag.com/
GideonWolff is a 27-year-old technical analyst and journalist with extensive experience in the cryptocurrency industry. With a focus on technical analysis and news reporting, GideonWolff provides valuable insights on market trends and potential opportunities for both investors and those interested in the world of cryptocurrency.
spot_imgspot_imgspot_imgspot_img

Nifty 50 (NSEI) & Sensex (BSESN) Hit Record Highs Before Closing Flat: Key Market Insights

<ul> <li>Indian stock market benchmarks, the Nifty 50 and the Sensex closed flat after hitting their fresh record highs in intraday trade on...

Aegis Logistics (AGIS) Stock Soars 9% to Record High Post Q4 Results, Climbs 23% in Just 2 Sessions

<ul> <li>Shares of Aegis Logistics surged 9 percent in intra-day deals on Monday to hit a new high of ₹775.20 apiece after the...

BLS E-Services (BLS) Stock Plummets 40% from Peak, Falls Below IPO Price: Is It a Buy Opportunity?

<ul> <li>BLS E-Services share price has been trading roughly 30% less than its listing price of ₹366.</li> <li>The BLS E-Services share price...