The company’s revenue from operations grew 37.8% YoY to Rs 3,952.5 crore in the quarter from Rs 2,867.4 crore in March 2022.
The Board of Directors of Varun Beverages, at their meeting, considered and approved the sub-division/split of existing equity shares of the company from l unit having a face value of Rs 10 each fully paid-up, into 2 equity shares having a face value of Rs 5 each fully paid-up, subject to the approval of equity shareholders of the company.
Varun Beverages total expenses stood at Rs 3,389 crore in the March quarter, up 34.8% from Rs 2,514 crore in the same quarter of the previous fiscal year.
Its sales volumes grew 24.7% in the March quarter of the calendar year 2023 to 22.4 crore cases. Meanwhile, its EBITDA increased by 50.3% to Rs 7,98 crore from Rs 5,30 crore.
Its gross margins improved 89 bps to 52.4% from 51.5% in Q1 CY2023, driven by marginal savings in raw material prices and improved product mix.
Depreciation increased 31% and financial cost 33% in Q1 CY2023 on account of capitalization of assets and setting-up of new production facilities.The record date for the said stock split will be decided after taking approval of equity shareholders of the company, Varun Beverages said in an exchange filing.
The rationale behind the stock split is to enhance the liquidity of the company’s equity shares and to encourage the participation of small investors, the company said in an exchange filing.
“We are happy to report the commissioning of our greenfield production facility at Kota, Rajasthan, and brownfield expansion at 6 facilities. The additional greenfield plant in Jabalpur, MP, is expected to be operational very soon. With regard to our international growth plans, construction of a new production facility in DRC has already started. We expect the facility to be operational before the year end,” said Ravi Jaipuria, Chairman of Varun Beverages.
“Our energy drink product has achieved a significant share in our overall mix and has firmly established our leadership position in the category. Our focus now turns towards new performers like Value Added Dairy, Sports Drinks, and Juice segments to sustain the growth momentum,” Jaipuria said.
In Tuesday’s trade, Varun Beverages shares were trading 1% higher at Rs 1,460. In the last one year, it has surged nearly 100%. While it has given multibagger returns to its investors as the stock has surged nearly 400% in the last three years.