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Varun Beverages Q1 net more than doubles, board recommends a bonus issue

Its total income during the quarter under review stood at Rs 2,275.60 crore, up 31.96 per cent from the same period a year ago

Varun Beverages | Varun Beverages shares | Q1 results

Press Trust of India  |  New Delhi 

Varun beverages

Ltd, PepsiCo's largest franchise bottler, on Monday reported a more than two-fold jump in consolidated net profit to Rs 136.75 crore in the first quarter ended March 2021, helped by volume growth across domestic and international markets.

The company, which follows the calendar year as its financial year, had posted a net profit of Rs 60.06 crore in the year-ago period.

Its total income during the quarter under review stood at Rs 2,275.60crore, up 31.96per cent from the same period a year ago. It was at Rs1,724.51crore in the corresponding period last fiscal, said in a regulatory filing.

"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' total expenses were at Rs2,080.91crore in the latest March quarter as against Rs1,650.18crore in the year-ago period.

Chairman Ravi Jaipuria said from a demand standpoint, itsaw 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.

The macro-environment in the quarter was largely supportive as consumption was almost nearing a sense of normalcy.

"This resulted in healthy volume growth of ~34 per cent YoY for our India business. The growth momentum continued in our international territories registering a ~26 per cent YoY volume growth during the quarter," Jaipuria said.

About the outlook,the company said the environment has evolved now with the onset of the second wave of COVID infections in the country and was now witnessing more localised, micro lockdowns and restrictions being imposed rather than a nationwide lockdown witnessed last year.

"Notwithstanding short-term non-linearity in business, we remain confident of the medium to longer-term outlook of the business," Jaipuria said.

In a separate filing, Varun Beverages said its board has recommended a bonus issue of equity shares in the proportion of one equity share for every two equity shares.

Shareof Varun Beverages on Monday settled at Rs1,003.70on BSE, up 5.51 per cent from previous close.

(Only the headline and picture of this report may have been reworked by the Business Standard staff; the rest of the content is auto-generated from a syndicated feed.)

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First Published: Mon, May 03 2021. 17:22 IST