Varun Beverages Q1CY23 PAT up 69% at Rs429 crore as EBITDA margins expands 172 bps to 20.5%

Varun Beverages reported 37.84% higher net revenues for the March 2023 quarter at Rs3,953 crore. The revenues were up 75.11% on a sequential basis. Varun Beverages is the largest bottler for Pepsi in India and accounts for nearly 85-90% of the bottling operations of Pepsi in India. EBITDA was higher 50% yoy at Rs798 crore in the quarter. The company saw robust volume growth as well as better realizations in the quarter.

Varun Beverages follows the Calendar year format and for the first quarter, sales volumes increased by 24.7% to 224.1 million cases. With an early summer setting in and an increase in lifestyle spending as well as events, there was a surge in demand this year. Gross margins improved by 89 bps from 51.5% to 52.4% in the March 2023 quarter.  

Financial highlights for Mar-23 compared yoy and sequentially

 Varun Beverages    

Rs in Crore






Total Income (Rs cr)

₹ 3,953

₹ 2,867


₹ 2,257


Net Profit (Rs cr)

₹ 429

₹ 254


₹ 75








Diluted EPS (Rs)

₹ 6.60

₹ 3.91


₹ 1.15


Net Margins







PAT margins have improved sharply to above 10% in the latest quarter, which is commendable for a outsourcing business model. EBITDA margins in the quarter were also up by 172 bps at 20.5% for the quarter. Inventory efficiency gains also contributed substantially to higher profits in the quarter for Varun Beverages. The company declared a final dividend of Rs1 per share taking total dividend for the year to Rs3.50 per share.

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