Varun Beverages Q3 Results: Consolidated Net Profit Soars 22.4%, Shares Jump 2.08%

Large cap FMCG company Varun Beverages Ltd shares today zoomed 2.08% to 590.20 per share on BSE at 12:28 soon after the company reported its September 2024 quarter results. The FMCG giant today announced a jump of 22.4% in its consolidated net profit to Rs 628.82 crore for the quarter ended September 2024 as against the Rs 514.06 crore declared in the corresponding quarter of last year, as per the BSE filing. It is worth mentioning that it is Q3 results of Varun Beverages for the 2024 calendar year. Meanwhile, its revenue from operations for the September 2024 quarter stood at Rs 4932.1 crore, up 25.2% as compared to Rs 3937.8 crore reported in the similar quarter of last year.

"Heavy rains throughout the quarter led to India volumes growing in mid-single digits i.e. 5.7% and international volumes grew by 7.9% organically, said VBL in its BSE filing.

Commenting on the performance for Q3 & 9M CY2024 Mr. Ravi Jaipuria, Chairman, Varun Beverages Limited said, "We are pleased to report another strong quarter, despite the challenges posed by excessive rainfall in India. We achieved consolidated revenue growth of 24.1%, including contributions from BevCo, driven by our expanded distribution network, increased product penetration, and favorable demand trends in key markets. Enhanced operating efficiencies led to an improvement of 117 bps in our EBITDA margins, resulting in a robust 30.5% growth in EBITDA, and a healthy 22.3% growth in PAT for the quarter."

Varun Beverages Shares Performance & Return: The 52-week high price of Varun Beverages shares on BSE is Rs 682.84 per share (as on 29/07/2024) and 52-week low price is Rs 331.28 per share (as on 26/10/2023), respectively. Varun Beverages shares slipped 4.43% in last 1-week and 10% in last 1-month. However, Varun Beverages shares zoomed 57% in last 1-year and offered attractive returns of 188% in last 2-years.

Shareholding Pattern: FII/FPI have decreased holdings from 25.79% to 25.32% in Jun 2024 qtr. Number of FII/FPI investors increased from 1112 to 1158 in Jun 2024 qtr. Mutual Funds have increased holdings from 2.26% to 2.42% in Jun 2024 qtr. Number of MF schemes increased from 31 to 33 in Jun 2024 qtr. Institutional Investors have decreased holdings from 29.95% to 29.86% in Jun 2024 qtr. Government pension fund global has 2.36% stake in Varun Beverages.

Should You Buy VBL Shares? Brokerage firm Citi issued buy call with target price of Rs 800 per share. HSBC also initiated coverage on Varun Beverages shares and recommended buy call with target price of Rs 780 per share. According to the analyst, "speed & market share can be picked up if co adopts tools ahead of its competitors."

About: Varun Beverages Limited ("VBL" or the "Company") is a key player in beverage industry and one of the largest franchisee of PepsiCo in the world (outside USA). The Company manufactures, distributes and sells a wide range of carbonated soft drinks (CSDs), as well as a large selection of non-carbonated beverages (NCBs), including packaged drinking water sold under trademarks owned by PepsiCo, according to its LinkedIn page.

Disclaimer:

The stock has been picked from the brokerage report of HSBC Securities and CITI. Greynium Information Technologies, the Author, and the respective Brokerage House are not liable for any losses caused as a result of decisions based on the article. Goodreturns.in advises users to check with certified experts before taking any investment decision.