Varun Beverages jump 5 per cent on healthy numbers

Varun Beverages (VBL) today has come up with its financial results for the quarter ended March 31, 2020.

The consolidated revenue for the quarter Q1CY20 came in at Rs 1,676.43 crore as against Rs 1,359.14 crore in the corresponding quarter last year, registering 23.3 per cent YoY increase.

EBITDA for the quarter grew by 24.2 per cent YoY to Rs 271.16 crore as against Rs 218.38 crore in the corresponding quarter last year.

PAT jumped by 50 per cent on YoY basis to Rs 60.06 crore as against Rs 40.04 crore in the corresponding quarter last year. This jump was supported by the exceptional item amounting to Rs 66.53 crore for the current quarter, representing provision for impairment in the value of certain plants and equipment, glass bottles & plastic shells.

Organic volumes for the company got severely impacted in the last 10 days of March due to the spread of COVID-19 and the subsequent lockdown restrictions. As per the relaxations provided by Government of India for essential services and particularly packaged food and beverages, VBL has got the permissions from respective state governments to operate its various production facilities.

The company has been able to sell its complete inventory of finished goods that was built up in the month of March in anticipation of the upcoming season. Moreover, the company has also operated few of its production facilities in April as the demand scenario is improving along with the relaxation in the lockdown.

In today’s session, the stock of VBL jumped by five per cent and made an intraday high of Rs 647.55 on BSE.