Varun Beverages records 61.8% growth in PAT; board approves stock split in 1:2 ratio

Varun Beverages, the largest franchise bottler for PepsiCo., in a board meeting on Tuesday, May 2, 2023, announced a stock split in the ratio of 1:2 which means the stock with a face value of Rs 10 will have two shares with a face value of Rs 5 each.

“The Authorized Share Capital of the Company is Rs. 10,00,00,00,000/- (Rupees One Thousand Crore only) divided into 2,00,00,00,000 (Two Hundred Crore) Equity Shares of the face value of Rs. 5/- (Rupees Five only) each" subject to the approval of Equity Shareholders through Postal Ballot,” the filing read.

The stock split will enhance the liquidity of the company's equity shares and encourage the participation of small investors by making equity shares of the Company more attractive to invest, according to the company.

Record Date for sub-division/split of existing Equity Shares shall be decided after taking aforesaid approval of the Equity Shareholders of the Company. The stock split is likely to be completed within two months from the date of approval of the company's shareholders.

Varun Beverages Q4 result

Varun Beverages’ net revenue from operations grew by 37.7 per cent YoY in the quarter ending March 31 to Rs. 38,92.98 crore driven by robust volume growth and an increase in net realisation. Profit after tax (PAT) for the quarter increased by 61.8 per cent to Rs 438.6 crore as compared to the year-ago period. Earnings before interest, taxes, depreciation, and amortisation (EBITDA) increased by 50.3 per cent year-on-year (YoY) to Rs 798 crore.

Sales volumes for the quarter grew by 24.7 per cent to 224.1 million cases, led by strong demand across India. EBITDA margin for the period rose by 170 basis points YoY to 20.5 per cent. The company’s net realisation increased by 10.4 per cent to Rs 173.7 primarily due to a price hike in selected SKUs taken towards the end of the base quarter last year and continued improvement in the mix of smaller SKUs (250ml).

Varun Beverages' share price history

Shares of the company traded in the red. Last seen, the stock was down by 0.52 per cent on BSE at Rs 1436.3, and on NSE the stock quoted Rs 1,433.5 apiece. On a year-to-date (YTD) basis, the shares of Varun Beverages have surged over 7 per cent as compared to Nifty50’s dip of 0.23 per cent. In the past six months, the stock rose over 27 per cent, as compared to the headline index’s rise of 0.40 per cent.

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