Varun Beverages Reports Mixed Financial Results with Record Cash Flow and Low Dividends in June 2025

Varun Beverages has recently reported its financial results for the quarter ending June 2025, revealing a mix of positive developments and areas of concern. The company's overall score has experienced an adjustment in evaluation, moving from 13 to 9 over the past three months.
On the positive side, Varun Beverages has achieved its highest operating cash flow at Rs 2,966.94 crore, reflecting consistent growth in cash revenues from its business operations over the last three years. Additionally, the company has demonstrated strong management of interest payments, with an operating profit to interest ratio reaching 54.69 times, the highest in the last five quarters. Other notable metrics include a peak operating profit (PBDIT) of Rs 1,998.77 crore and a profit before tax (PBT) of Rs 1,654.88 crore, both indicating a favorable near-term trend.

Conversely, the company has reported its lowest dividend per share at Rs 1.00 in the last five years, along with a dividend payout ratio of 14.57%, suggesting a reduced distribution of profits to shareholders. Furthermore, while non-operating income has increased to Rs 77.16 crore, its sustainability may be in question.

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