Varun Beverages has fixed 12 April 2023 as record date for final dividend of Re 1 per equity share of Rs 10 for FY ended 31 December 2022.

Powered by Capital Market - Live News

Varun Beverages Ltd lost 0.9% today to trade at Rs 1330.95. The S&P BSE FMCG Sector index is down 0.1% to quote at 16134.81. The index is down 1.65 % over last one month. Among the other constituents of the index, ITC Ltd decreased 0.54% and Radico Khaitan Ltd lost 0.46% on the day. The S&P BSE FMCG Sector index went up 22.18 % over last one year compared to the 0.45% surge in benchmark SENSEX.

Varun Beverages Ltd has added 1.77% over last one month compared to 1.65% fall in S&P BSE FMCG Sector index and 4.02% drop in the SENSEX. On the BSE, 3531 shares were traded in the counter so far compared with average daily volumes of 72456 shares in the past one month. The stock hit a record high of Rs 1432.05 on 12 Dec 2022. The stock hit a 52-week low of Rs 613.57 on 21 Mar 2022.

Powered by Capital Market - Live News

The SPV has been incorporated under the Companies Act, 2013 in 2016 by Sunsource Energy for the purposes of developing a captive generating solar power plant and supplying solar power to consumers in Uttar Pradesh, India. The turnover of the SPV for the FY 21-22 was Rs 39.17 lakh.

Offering the investment rationale, Varun Beverages stated that it intends to obtain solar power (generation and supply) from SPV for its facilities located in Sandila, Uttar Pradesh and Kosi, Uttar Pradesh. Solar power is environment friendly (green energy) with the added advantage of reduction in the power cost of the respective facilities.

Accordingly, as per the Electricity Act, 2003, the Company, being captive user, is required to make investment in the SPV.

Varun Beverages has acquired 31,50,000 equity shares of the SPV for a cash consideration of Rs 3.15 crore.

Varun Beverages is a key player in beverage industry and one of the largest franchisees of PepsiCo in the world (outside USA).

The company's consolidated net profit zoomed 150.15% to Rs 81.52 crore in Q4 CY22 from Rs 32.59 crore reported in Q4 CY21. Revenue from operations (net of excise / GST) stood at Rs 2,214.23 crore in Q4 CY22, registering a growth of 27.7% as against Rs 1,734.34 crore posted in the corresponding quarter previous year.

The scrip shed 0.57% to currently trade at Rs 1305.05 on the BSE.

Powered by Capital Market - Live News

Varun Beverages has invested 9.80% of Equity Share Capital (5.68% on fully diluted basis) of Lone Cypress Ventures, a special purpose vehicle inter-alia engaged to supply solar power to consumers in the state of Uttar Pradesh.

The company intends to obtain solar power (generation and supply) from SPV for its facilities located in Sandila, Uttar Pradesh and Kosi, Uttar Pradesh. Solar power is environment friendly (green energy) with the added advantage of reduction in the power cost of the respective facilities.

Accordingly, as per the Electricity Act, 2003, the company, being captive user, is required to make investment in the SPV.

Powered by Capital Market - Live News