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Varun Beverages shares in focus as stock trades ex-bonus

Shares of Varun Beverages Ltd (VBL) started trading ex-bonus on Monday, a day ahead of its record date for bonus shares issue. Varun Beverages shares were trading nearly a per cent lower at 726 apiece on the BSE in opening deals.

With its earnings for the quarter ended March 2022, the company’s board of directors had announced the bonus shares issue in the ratio of 1:2. The record date for the same has been fixed on Tuesday, June 7, 2022.

Bonus shares will be issued out of securities premium account of the company available as at December 31, 2021, the company said. Bonus shares are fully paid additional shares issued by a company to its existing shareholders.

“The board of directors has considered and approved the bonus issue of equity shares in the proportion of 1 (One) equity share of 10/- each for every 2 (Two) equity shares of 10/- each held by the shareholders of the company as on the record date, subject to the approval of shareholders through postal ballot i.e. in compliance with the applicable laws,” Varun Beverages had informed in an exchange filing in April.

Meanwhile, Varun Beverages’ net profit for the quarter ended March 2022 increased 96% at 254 crore as compared to 129 crore year-on-year (YoY), driven by volume growth and improved revenue. Its revenue during the said quarter grew 26% to 2,867.5 crore from 2,270 crore in the same quarter last year.

Moreover, despite the increase in input costs, EBITDA margin improved by 175 bps to 18.8%, led by the higher realisation and operating leverage from increased sales volume. “Total sales volumes rose 18.7 per cent year-on-year to 179.7 million cases as compared to 151.4 million cases driven by strong demand across geographies,” VBL had said.

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