Varun Beverages Reports Mixed Performance in Q2 FY25 Financial Results

Varun Beverages, a leading player in the breweries and distilleries industry, recently announced its financial results for the quarter ending September 2024. The company’s stock has been given a ‘Hold’ call by MarketsMOJO.

According to the financial report, Varun Beverages has seen a flat performance in the quarter, with a score of 1 compared to 6 in the previous quarter. However, there are some positive aspects to the company’s performance. The net sales for the quarter have grown by 24.14% year on year, indicating a positive sales trend in the near term. Similarly, the profit after tax has also shown a growth of 23.7% year on year, with a positive trend in the near term.

On the other hand, there are some areas of concern for Varun Beverages. The interest cost for the half-yearly period has increased by 48.01% compared to the previous period, indicating a rise in borrowings. The debt-equity ratio for the company is also at its highest in the last five half-yearly periods, standing at 0.79 times. This suggests that the company is relying more on borrowings to fund its operations, which may lead to a stressed liquidity situation. Additionally, the debtors turnover ratio for the half-yearly period is at its lowest in the last five periods, indicating a slower pace in settling debts.

Overall, Varun Beverages has shown a mixed performance in the quarter ending September 2024. While there are some positive aspects to its financials, there are also some areas of concern that need to be addressed. Investors are advised to hold their positions in the company’s stock and keep a close eye on its future performance.