Earnings Alerts

Varun Beverages (VBL) Earnings: Q1 Net Income Grows 35% But Falls Short of Estimates

  • Varun Beverages’ net income for the first quarter is 7.26 billion rupees, marking a 35% increase compared to the previous year, but it fell short of the expected 7.41 billion rupees.
  • The company’s revenue for the same period reached 56.8 billion rupees, which is a 29% rise year over year.
  • Total costs for the quarter amounted to 47.3 billion rupees, increasing by 28% compared to the previous year.
  • A dividend of 0.5 rupees per share has been declared for the period.
  • Among analysts, there are 24 buy recommendations, 3 holds, and no sell recommendations for Varun Beverages.

Varun Beverages on Smartkarma

Analyst coverage on Varun Beverages by Brian Freitas on Smartkarma sheds light on significant changes affecting the Nifty Next50 Index. In his research report titled “Nifty Next50 Index Rebalance Preview: Big Capping Flows in December; Methodology Change Coming?“, Freitas predicts a substantial turnover of 21.9% and a one-way trade value of INR 75bn (US$881m) for the Nifty Next50 Index in December. With the introduction of 45 stocks in the F&O segment, capping changes are expected, potentially impacting the index constituents. Freitas also hints at possible methodology revisions in the near future, hinting at the deletion of certain components by March.


A look at Varun Beverages Smart Scores

FactorScoreMagnitude
Value2
Dividend2
Growth5
Resilience2
Momentum2
OVERALL SMART SCORE2.6

Smart Score is a compound score for the Company indicating its overall outlook. It is derived by taking an equally weighted average of underlying Factor scores computed by Smartkarma

Varun Beverages Limited, a company that produces and distributes beverages globally, is showing strong growth potential with a high score of 5 in the Growth category according to Smartkarma Smart Scores. This suggests that the company is well-positioned to expand its market presence and increase its revenue over the long term. Despite receiving lower scores in Value, Dividend, Resilience, and Momentum categories, the solid Growth rating indicates that Varun Beverages may be focusing on strategic initiatives to drive future success and profitability in the beverage industry.

While Varun Beverages may not currently exhibit high value, dividend yield, resilience, or momentum according to Smartkarma Smart Scores, its outstanding Growth score of 5 signals a promising future outlook for the company. With a primary focus on producing carbonated soft drinks, non-alcoholic beverages, and packaged drinking water, Varun Beverages is well-positioned to capitalize on the increasing demand for beverages globally. Investors may want to keep an eye on Varun Beverages as it continues to pursue growth opportunities in the competitive beverage market based on its strong Growth performance.


Disclaimer: This article by Smartkarma is general in nature and based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Note that our articles may not factor in the latest price-sensitive company announcements or qualitative material.
While all reasonable care has been taken in the preparation, Smartkarma makes no assurance about the accuracy of any generated data or content. All content is indicative only and should be independently checked for accuracy and confirmed before use. Smartkarma accepts no responsibility for any loss or damage caused as a result of any inaccuracy or error within the Lab online tools or generated data.
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