Shares of Varun Beverages were trailing in the red after the company posted its earnings for the quarter ended March.

What Happened: The FMCG major reported a consolidated net profit of ₹547.9 crore, a growth of 24.9% compared to the corresponding quarter of the previous year. The PepsiCo Bottler’s revenue for the period stood at ₹4,397.9 crore, reflecting an increase of 11.2%.

EBITDA for the quarter went up 23.9% year-on-year to ₹988.7 crore, while the EBITDA margin saw an improvement of 240 basis points to 22.9% during the same period. This enhancement was primarily driven by higher gross margins and increased realisation, the company said in a statement.

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The company added that these improvements were achieved despite the escalation in fixed costs associated with the company’s expansion into new territories and the commissioning of new greenfield plants for the season.

Total sales volume grew by 7.2% to 240.2 million cases in the January-March period from 224.1 million cases in the same quarter last year. “During the quarter, India’s territory grew by 4.4% and International markets by 21.9%, in-spite of a delay in the Holi festival by 17 days resulting in a delayed seasonality cycle,” the company said in a press release.

Price Action: VBL’s share price was down 0.98% to trade at ₹1,448.95 in the afternoon hours of trading on Monday.

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