Varun Beverages share price gains post Q3 results; profit jumps 22%

Shares of Varun Beverages gained 2.74 per cent at Rs 594.05 a piece on the BSE in Monday’s intraday trade. The company’s share price rose after it delivered strong quarterly earnings for the third quarter of the calender year 2024(Q3CY24).

In Q3CY24, the company reported a revenue growth of 24.1 per cent year-on-year, reaching Rs 4,804.68 crore, up from Rs 3,870.52 crore in Q3CY23. The net realisation per case also saw a rise of 1.9 per cent, increasing to Rs 179.60.

Profit After Tax (PAT) increased by 22.3 per cent, reaching Rs 628.83 crore in Q3CY24, up from Rs 514.06 crore in the same quarter last year, fueled by volume growth and enhanced margins.

 

Consolidated sales volume grew by 21.9 per cent, totaling 26.75 crore cases in Q3CY24, compared to 21.95 crore cases in the same quarter last year. 

Despite heavy rains throughout the quarter, which impacted volumes, India experienced mid-single-digit growth of 5.7 per cent, while international volumes grew organically by 7.9 per cent, the company said in a statement on Tuesday. 

Earnings before interest, taxes, depreciation, and amortisation (Ebitda) surged by 30.5 per cent, increasing to Rs 1,151.12 crore from Rs 882.14 crore. Gross margins improved by 22 basis points to 55.5 per cent in Q3CY24, compared to 55.3 per cent in Q3CY23. 

Notably, approximately 49 per cent of consolidated sales volumes came from low-sugar and no-sugar products in the first nine months of CY2024. The Ebitda margin also improved by 117 basis points to 24.0 per cent, driven by operational efficiencies, the company said. 

“Our focus remains on sustaining healthy growth in both Indian and international markets. Meanwhile, our global operations, particularly in Africa, are positioned to drive further growth as we capitalise on emerging demand trends and enhance our operational capabilities,” said Ravi Jaipuria, Chairman, Varun Beverages. 

The company also announced that its board has approved a proposal to raise Rs 7,500 crore funds through the issuance of equity shares via QIP. 

“This capital will be instrumental in supporting our growth plans, including expansion into new territories, potential strategic acquisitions, and further strengthening of our balance sheet,” Jaipuria said.

Varun Beverages share price history

The company’s stock has outperformed the market year to date as it has risen 17.4 per cent, while slipping 57.4 per cent in the last one year. In comparison BSE Sensex has risen 11.6 per cent year to date and 23.3 per cent in a year. 

The company has a total market capitalisation of Rs 1.88 trillion. Its shares are trading at a price to earnings multiple of 87.22 times and at an earning per share of Rs 6.63. 

At 12:55 PM, the stock price of the company was up 0.72 per cent at Rs 582.35 a piece on the BSE. By comparison, the BSE’s Sensex was down 0.59 per cent to 80,669 level.