Varun Beverages Ltd Q2CY20 consolidated PAT at Rs. 140.77 crore

Varun Beverages Ltd has reported financial results for the period ended June 30, 2020.

Financial Results (Q2 CY2020) - QoQ Comparison

The company has reported total income of Rs.1668.35 crores during the period ended June 30, 2020 as compared to Rs.1724.51 crores during the period ended March 31, 2020.

The company has posted net profit / (loss) of Rs.140.77 crores for the period ended June 30, 2020 as against net profit / (loss) of Rs.54.91 crores for the period ended March 31, 2020.

The company has reported EPS of Rs.4.88 for the period ended June 30, 2020 as compared to Rs.1.90 for the period ended March 31, 2020.

Financials	Q2 CY2020	Q1 CY2020	% Change
Total Income	₹ 1668.35 crs	₹ 1724.51 crs	-3.26%
Net Profit	₹ 140.77 crs	₹ 54.91 crs	156.36%
EPS	₹ 4.88	₹ 1.90	156.84%

Financial Results (Q2 CY2020) - YoY Comparison

The company has reported total income of Rs.1668.35 crores during the period ended June 30, 2020 as compared to Rs.2854.79 crores during the period ended June 30, 2019.

The company has posted net profit / (loss) of Rs.140.77 crores for the period ended June 30, 2020 as against net profit / (loss) of Rs.406.92 crores for the period ended June 30, 2019.

The company has reported EPS of Rs.4.88 for the period ended June 30, 2020 as compared to Rs.14.85 for the period ended June 30, 2019.

Financials	Q2 CY2020	Q2 CY2019	% Change
Total Income	₹ 1668.35 crs	₹ 2854.79 crs	-41.56%
Net Profit	₹ 140.77 crs	₹ 406.92 crs	-65.41%
EPS	₹ 4.88	₹ 14.85	-67.14%

Financial Results (6 months ended CY 2020) - YoY Comparison

The company has reported total income of Rs.3392.86 crores during the 6 months period ended June 30, 2020 as compared to Rs.4236.80 crores during the 6 months period ended June 30, 2019.

The company has posted net profit / (loss) of Rs.195.69 crores for the 6 months period ended June 30, 2020 as against net profit / (loss) of Rs.447.55 crores for the 6 months period ended June 30, 2019.

The company has reported EPS of Rs.6.78 for the 6 months period ended June 30, 2020 as compared to Rs.16.33 for the 6 months period ended June 30, 2019.

Financials	6 Months Ended CY2020	6 Months Ended CY2019	% Change
Total Income	₹ 3392.86 crs	₹ 4236.80 crs	-19.92%
Net Profit	₹ 195.69 crs	₹ 447.55 crs	-56.28%
EPS	₹ 6.78	₹16.33	-58.48%

Commenting on the performance for Q2 & H1 2020 Mr. Ravi Jaipuria, Chairman, Varun Beverages Limited said, "The quarter started amidst an uncertain and unpredictable operating environment with the proliferation of COVID-19 pandemic leading to multiple lockdowns across markets. With this period being a key season for our product portfolio, the operating constraints severely impacted organic volumes and the overall performance throughout the second quarter. On a brighter note, as the Unlock phase started, we witnessed a steady uptick in demand on a month-on-month basis and accordingly we resumed operations at various facilities. The Company has also been able to steadily ramp-up operations across facilities and gradually reverting to near-normal business in the current months.

The overall input cost environment has been favourable as there has been moderation in key raw materials and with sharp focus on cutting non-essential costs, we have been able to report healthy margins in Q2 2020 as compared to Q1 2020 on a similar revenue base. While constraints continue due to restriction in several parts of the country and near-term demand outlook remains uncertain, the decline in out-of-home consumption of beverages was partially offset by increase in in-home demand.

With new phases of Unlock announcements, we are taking measures to scale up the capacity utilisation to pre-COVID-19 levels. Consumers, especially in urban markets, are banking on online channels to buy groceries and essential products, and as recovery in rural demand surges, we should once again see encouraging growth, going forward. With overall macro-economic environment expected to normalize by the end of this calendar year, we remain confident of a strong demand revival in our product category in the coming fiscal, which, we believe, should enable us to deliver a robust operational and financial performance, going ahead."

Shares of Varun Beverages Ltd was last trading in BSE at Rs.688.55 as compared to the previous close of Rs. 707.55. The total number of shares traded during the day was 2800 in over 656 trades.

The stock hit an intraday high of Rs. 709.1 and intraday low of 680.55. The net turnover during the day was Rs. 1927229.

Source : Equity Bulls

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