Varun Beverages share price gains over 2% on 83% rise in Q2 net profit

Varun Beverages share price rose over 2% today after PepsiCo India's bottling partner reported a 83.73 per cent rise in consolidated net profit for the quarter ended September 30, 2019. Varun Beverages share price rose 2.65% to Rs 637 compared to the previous close of Rs 620.55 on BSE.

Varun Beverages share has gained 2.18% returns in three days. The mid cap stock opened 2.65% higher at Rs 637 on BSE. Varun Beverages share price has gained 20.24% since the beginning of this year and risen 24.77% during the last one year. It has climbed 2.05% in last one month.

The firm's consolidated net profit rose to Rs 81.12 crore for the quarter ended September 30, 2019 against profit of Rs 44.15 crore in the year-ago period. Revenue from operations during the quarter stood at Rs 1,776.85 crore as against Rs 1,204.47 crore in July-September 2018, Varun Beverages said in a regulatory filing. The company follows January-December financial year.

"Our India business has delivered an organic volume growth of 17.5 per cent and our international territories have registered a 27 per cent growth led by exceptional performance in under penetrated territories acquired in 2017 and early 2018," Varun Beverages Chairman Ravi Jaipuria said.

Besides, the company''s key markets like Morocco, Zimbabwe, Nepal and Sri Lanka have reported double-digit growth in the quarter under review, he added.

The board also approved acquiring control of Angelica Technologies. Majority of directors in Angelica will be appointed by Varun Beverages. Varun Beverages has been associated with PepsiCo for over 27 years accounting for 80 per cent of the US firm's beverage sales volume in India.

By Aseem Thapliyal