In Thursday’s intra-day trade, the shares of Varun Beverages (VBL) rallied 5% to Rs 1,180 on the BSE. In the past three days, the beverage company stock has surged 12% after the company testified a strong set of numbers for Q3CY22 September 2022. It traded close to its record-high level of Rs 1,194.80, on September 22, 2022. The S&P BSE Sensex was down 0.08% at 60,856 points at 10:00 am.

VBL is a prime player in the beverage industry, being the largest franchisee of PepsiCo in the world outside the USA. The company harvests and distributes a wide range of Carbonated Soft Drinks (CSDs) and a large selection of Non-Carbonated Beverages (NCBs), including wrapped drinking water sold under the PepsiCo trademark.

In Q3CY22, VBL’s profit after tax (PAT) increased by 53.3% to Rs 396 crore from Rs 258 crore in Q3CY21, obsessed by high growth in revenue from actions, improvement in margins, and conversion to a lower tax rate in India.

Revenue from processes grew by 32.5% YoY to Rs 3,177 crore because of healthy volume growth over the last year and higher realisation on a combined basis. Ebitda margins stood healthy at 22% during the quarter, led by the higher realisation and functioning leverage from amplified sales volume, VBL said.

The company’s India business has brought a solid organic volume growth of 22%, led by a favourable demand situation and a strong recital of the energy drink – Sting. In addition, the management said that healthy double-digit sales volume growth of 31% in key international markets further supported performance during the quarter.

Going ahead, VBL expects double-digit volume growth to endure, led by 5-10% annual growth and revenue per outlet. The festive season in the fourth quarter is predictable to further aid ingesting trends in this calendar year. The management is self-confident that the company can deliver healthy volume growth across all product groups going forward and further reinforce the company’s market located in the beverage industry.