5 February 2024

Varun Beverages
4QCY23 Results Update | Sector: Midcaps

Varun Beverages
Estimate change CMP: INR1,302 TP: INR1,500 (+15%) Buy
TP change
Rating change
Strong volume growth drives sales
Earnings in line with our estimates
Bloomberg VBL IN  Varun Beverages (VBL) reported a revenue growth of 21% YoY in 4QCY23,
Equity Shares (m) 1299 led by strong volume growth (up 18% YoY) and high realization (up 2% YoY
M.Cap.(INRb)/(USDb) 1692.4 / 20.4 to INR171/case).
52-Week Range (INR) 1380 / 550
 While we maintain our CY24 earnings, we increase our CY25 earnings
1, 6, 12 Rel. Per (%) 2/46/104
12M Avg Val (INR M) 2228 estimate by 7%, integrating the recently acquired South African beverage
company BevCo’s financials and also increasing volume growth estimate of
Financials & Valuations (INR b) the existing business to 16%/14% for CY24/25 from 14%/13% earlier
Y/E Dec 2023 2024E 2025E estimated. However, higher interest cost, led by increase in debt (capex and
Sales 160.4 200.1 243.7 acquisition-led increase) partly offsets the increase in earnings. We reiterate
EBITDA 36.1 44.7 54.8
Adj. PAT 20.6 25.8 34.0 our BUY rating on the stock with a TP of INR1,500.
EBITDA (%) 22.5 22.3 22.5
EPS (INR) 15.8 19.8 26.2 Margin expansion led by favorable operating leverage
EPS Gr. (%) 37.3 25.3 32.1
BV/Sh. (INR) 53.4 70.7 94.4  VBL’s revenue grew 21% YoY to INR26.7b (est. in line), driven by healthy
Ratios volume (+18% YoY to 156m cases), while realization grew 2% YoY to
Net D/E 0.7 0.6 0.2 INR171/case. Volume growth was driven by both India (18.7% YoY) and
RoE (%) 34.2 31.9 31.7
international markets (16% YoY).
RoCE (%) 22.1 21.7 24.8
Payout (%) 15.8 12.6 9.5  EBITDA margin expanded 180bp YoY to 15.7% (est. 15.4) on the back of
Valuations favorable operating leverage. EBITDA grew 36% YoY to INR4.2b (est. in line).
P/E (x) 82.3 65.7 49.7  Adj. PAT increased 77% YoY to INR1.3b (est. in line), driven by higher sales
EV/EBITDA (x) 48.2 39.1 31.3
growth and improvement in margins.
Div Yield (%) 0.2 0.2 0.2
FCF Yield (%) -0.5 0.1 1.9  CSD/Juices/water volumes grew 25%/14%/5% YoY to 106m/8m/42m unit
cases in 3QFY24; for CY23, volumes grew 17%/1%/9%, respectively.
Shareholding pattern (%)  For CY23, Revenue/EBITDA/PAT grew 22%/29%/37% to
Dec-23 Sep-23 Dec-22 INR163b/INR36.1b/INR20.6b. Volumes grew 14% YoY to ~913m cases.
Promoter 63.1 63.1 63.9
 Net debt as of Dec’23 stood at INR47.3b vs. INR34.1b as of Dec’22, while
DII 3.6 3.4 3.4
FII 26.6 27.6 26.5 debt/equity ratio reduced to 0.67x vs. 1.31x.
Others 6.8 6.5 6.2
Note: FII includes depository receipts Highlights from the management commentary
 New business: The management is expecting strong growth in Gatorade,
Juice, and value-added dairy segment as the production capacity has
increased 200%.
 Capex: VBL has capitalized ~INR21b in CY23 across greenfield and
brownfield expansions, resulting in 45% capacity expansion in CY24. In CY24,
the management guided to capitalize ~INR36b.
 Deepening of Distribution in India: The company is enhancing its go-to-
market strategy by annually expanding to 400-500k outlets and alongside
adding more chilling equipment.

Sumant Kumar - Research Analyst ([email protected])

Research Analyst: Meet Jain ([email protected]) / Omkar Shintre ([email protected])
Investors are advised to refer through important disclosures made at the last page of the Research Report.
Motilal Oswal research is available on www.motilaloswal.com/Institutional-Equities, Bloomberg, Thomson Reuters, Factset and S&P Capital.
 Varun Beverages

Valuation and view

 We expect VBL to maintain its earnings momentum, aided by: 1) increased
penetration in newly acquired territories in India and Africa, 2) higher
acceptance of newly launched products, 3) continued expansion in capacity and
distribution reach, 4) growing refrigeration in rural and semi-rural areas, and 5)
a scale-up in international operations.
 We expect a CAGR of 23%/23%/29% in revenue/EBITDA/PAT over CY23-25.
 While we maintain our CY24 earnings, we increase our CY25 earnings estimate
by 7%, on account of integrating the recently acquired South African beverage
company BevCo’s financials (assumed only six months of integration in CY24)
and also increasing the volume growth estimate of the existing business to
16%/14% for CY24/25 from 14%/13% earlier estimated. However, higher
interest cost led by an increase in debt (capex and acquisition led increase)
partly offsets the increase in earnings.
 We value the stock at 57x CY25E EPS to arrive at a TP of INR1,500. We
reiterate our BUY rating on the stock.

Consolidated - Quarterly Earning Model (INRm)

Y/E December CY22 CY23 CY22 CY23 CY23E Var
1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 4Q %
Gross Sales 28,275 49,548 31,766 22,142 38,930 56,114 38,705 26,677 1,31,731 1,60,425 26,737 0
YoY Change (%) 26.2 102.3 32.5 27.7 37.7 13.3 21.8 20.5 49.3 21.8 20.8
Total Expenditure 22,965 37,042 24,776 19,067 30,949 41,004 29,884 22,494 1,03,850 1,24,331 22,631
EBITDA 5,310 12,506 6,990 3,075 7,980 15,110 8,821 4,183 27,881 36,095 4,106 2
Margins (%) 18.8 25.2 22.0 13.9 20.5 26.9 22.8 15.7 21.2 22.5 15.4
Depreciation 1,313 1,531 1,531 1,797 1,722 1,719 1,708 1,660 6,172 6,809 1,795
Interest 470 464 453 475 626 694 625 737 1,861 2,681 570
Other Income 85 105 106 92 101 416 185 91 388 794 106
PBT before EO expense 3,612 10,616 5,112 896 5,734 13,113 6,673 1,878 20,236 27,398 1,847
PBT 3,612 10,616 5,112 896 5,734 13,113 6,673 1,878 20,236 27,398 1,847
Tax 901 2,596 1,157 81 1,348 3,057 1,529 442 4,735 6,375 406
Rate (%) 25.0 24.5 22.6 9.0 23.5 23.3 22.9 23.5 23.4 23.3 22
MI & Profit/Loss of Asso. Cos. 169 146 144 68 95 118 130 118 527 461 78
Reported PAT 2,542 7,874 3,810 748 4,291 9,938 5,015 1,318 14,974 20,561 1,363
Adj PAT 2,542 7,874 3,810 748 4,291 9,938 5,015 1,318 14,974 20,561 1,363 -3
YoY Change (%) 96.7 155.5 58.7 353.3 68.8 26.2 31.6 76.3 115.8 37.3 82.3
Margins (%) 9.0 15.9 12.0 3.4 11.0 17.7 13.0 4.9 11.4 12.8 5.1

Exhibit 1: Key performance indicators

Y/E December 3QCY21 4QCY21 1QCY22 2QCY22 3QCY22 4QCY22 1QCY23 2QCY23 3QCY23 4QCY23
Segment Volume Gr.
CSD 22 24 18 85 23 25 27 6 19 25
NCB 33 50 18 139 38 17 23 -13 0 14
Water 54 36 21 140 25 5 17 7 8 5
Cost Break-up
RM Cost (% of sales) 47 45 48 49 46 44 48 48 45 43
Employee Cost (% of sales) 11 15 10 6 10 14 9 6 10 14
Other Cost (% of sales) 21 28 23 19 22 28 23 19 23 27
Gross Margins (%) 53 55 52 51 54 56 52 52 55 57
EBITDA Margins (%) 21 12 19 25 22 14 20 27 23 16
EBIT Margins (%) 15 5 14 22 17 6 16 24 18 9
Source: Company, MOFSL

5 February 2024 2
 Varun Beverages

Key exhibits
Exhibit 2: Trend in consolidated revenue Exhibit 3: Trend in consolidated EBITDA
EBITDA (INRb) Margins (%)
Revenue (INRb) Growth YoY (%)
25.2% 26.9%
22.0% 22.8%
102% 20.5%
18.8%
38% 15.7%
30% 26% 32% 28% 22% 20% 13.9%
13% 12.0%

17.3 28.3 49.5 31.8 22.1 38.9 56.1 38.7 26.7 2.1 5.3 12.5 7.0 3.1 8.0 15.1 8.8 4.2
4QCY21

1QCY22

2QCY22

3QCY22

4QCY22

1QCY23

2QCY23

3QCY23

4QCY23

4QCY21

1QCY22

2QCY22

3QCY22

4QCY22

1QCY23

2QCY23

3QCY23

4QCY23
Source: Company, MOFSL Source: Company, MOFSL

Exhibit 4: Trend in consolidated adjusted PAT

Adj. PAT (INRm) Growth YoY (%)
353%

184% 156%
97% 69% 77%
59% 32%
26%

165 2,542 7,874 3,810 748 4,291 9,938 5,011 1,320

4QCY21

1QCY22

2QCY22

3QCY22

4QCY22

1QCY23

2QCY23

3QCY23

4QCY23
Source: Company, MOFSL

Exhibit 5: CSD sales volumes trend

CSD volumes (mn-units cases) Growth YoY

85%
24% 18% 23% 25% 27% 19% 25%
6%

68.2 125.7 218.3 133.4 85.0 160.1 232.0 159.0 106.0

4QCY21

1QCY22

2QCY22

3QCY22

4QCY22

1QCY23

2QCY23

3QCY23

4QCY23

Source: Company, MOFSL

5 February 2024 3
 Varun Beverages

Exhibit 6: NCB sales volume trend

NCB volumes (mn-units cases) Growth YoY

139%

50% 38%
18% 17% 23% 14%
-13% 0%

6.0 13.0 26.3 11.0 7.0 16.0 23.0 11.0 8.0

4QCY21

1QCY22

2QCY22

3QCY22

4QCY22

1QCY23

2QCY23

3QCY23

4QCY23
Source: Company, MOFSL
Exhibit 7: Water sales volumes trend

Water volumes (mn-units cases) Growth YoY

140%

17% 7%
36% 21% 25%
5% 8% 5%

38.0 41.0 55.3 46.3 40.0 48.0 59.0 50.0 42.0

4QCY21

1QCY22

2QCY22

3QCY22

4QCY22

1QCY23

2QCY23

3QCY23

4QCY23
Source: Company, MOFSL

Exhibit 8: Strong Total Volume growth trend

Total Volume (mn-units cases) Growth YoY

97%
29% 19% 24% 18% 25% 15% 18%
5%

112.2 179.7 299.9 190.7 132.0 224.1 314.0 220.0 156.0

4QCY21

1QCY22

2QCY22

3QCY22

4QCY22

1QCY23

2QCY23

3QCY23

4QCY23

Source: Company, MOFSL

Exhibit 9: Trend in blended realization Exhibit 10: Trend in EBITDA/case

Blended Realization (INR/unit-case) Growth YoY EBITDA/case (INR/unit-case) Growth YoY

26%
10% 17% 21%
9% 8% 11% 14% 15% 15%
6% 6% 6% 9%
1% 3% 2% -7%

155 157 165 167 168 174 179 176 171 18 30 42 37 23 36 48 40 27

4QCY21

1QCY22

2QCY22

3QCY22

4QCY22

1QCY23

2QCY23

3QCY23

4QCY23

4QCY21

1QCY22

2QCY22

3QCY22

4QCY22

1QCY23

2QCY23

3QCY23

4QCY23

Source: Company, MOFSL Source: Company, MOFSL

5 February 2024 4
 Varun Beverages

Highlights from the management interaction

Operating Performance
 Net Revenue from operations grew 22% YoY in CY23, driven by volume growth
in both Indian & International markets and an increase in net realization per
case.
 Net realization per case increased 7% in CY23, driven by continued
improvement in the mix of smaller SKUs (250ml) in Indian Markets and
improved realization per case in International markets.
 Gross margins improved during the year, primarily because of softening of PET
chips prices, although sugar prices increased slightly during the year. EBITDA
margin improved in CY23, led by increased realization and higher gross margins.
 Working capital days have remained steady with both inventory days and trade
payable days reducing slightly.

Outlook
 The period from Mar to Jul is the peak season for the company. Even after
witnessing a washout peak season in CY23, the company delivered healthy
volume growth of ~14% in CY23. This, coupled with an increase in capacity, gives
management the confidence to continue the growth momentum.
 Going ahead, the company will focus on improving the go-to-market (expanding
to 400-500k outlets every year) and adding more chilling equipment. It will focus
on going deeper into the existing market.

Capex
 In CY23, the net capex capitalized amounted to ~INR21b. This primarily includes
(a) the establishment of new greenfield production facilities in Bundi (Rajasthan)
& Jabalpur (MP) for INR8.5b (b) Brownfield expansion at six existing facilities in
India for ~INR8b (c) the acquisition of land in Bihar and Andhra Pradesh for
construction of plant in the future, amounting to INR1.5b.
 Balance capex comprises international projects, factoring in write-offs and forex
fluctuations
 Post this capex, the company expects capacity in CY24 to increase by ~45% over
CY22 capacity.
 The company expects to incur a capex of ~INR12b in CY24.

Debt
 Net debt stood at INR47.3b as on 31 Dec’23 vs. INR34.1b as on 31 Dec’22.
 Net debt majorly increased due to an increase in CWIP and capital advances
(incremental addition by ~INR12b). This increase was on account of a new
facility in Maharashtra, which was about near completion (commissioned on
25th Jan’24).

5 February 2024 5
 Varun Beverages

African business
 VBL already got approval from Botswana for setting up a facility and is awaiting
approval for Namibia and South Africa, which is likely to expected by the end of
February’24.
 PepsiCo’s share is ~1.5% in the African market, while BevCo’s share is ~12%.
Sting
 Generally, energy drink mix constitutes ~14-15% of the total beverage market in
most countries. Sting has achieved a market share of ~14-15% within the overall
volume of PepsiCo at VBL.
 Sting has reached ~3.5m outlets in India.

Dairy segment
 Going ahead, VBL is expecting huge growth in Gatorade, Juice, and value-added
dairy segment as the production capacity has increased by 200%.
 Currently, the Dairy share is just ~0.5% of the total volume and the company
expects to double this in CY24.
 Currently, the dairy plant was just within the Northern part of India. Now the
company has commissioned a plant in the Western region and will be soon
setting up a plant in the Eastern market.

Others
 VBL’s PET recycling plant will start production in CY25 and will cater to ~25% of
the volume.
 VBL’s new facility in Maharashtra is already being commissioned and the
Gorakhpur facility is likely to commission in Mar/Apr’24.
 The international market has grown by ~16%/18% for 4QCY23/CY23. Zimbabwe
has grown by ~23% YoY in CY23.
 The company is looking to add ~30m cases in DRC.
 The company has incorporated a new subsidiary - ‘VBL Mozambique, SA’ in
Mozambique, South Africa, to carry on the business of distribution of Beverages.
 In Oct’23, the company has acquired a 5.03% shareholding in Lunarmech
Technologies Private Limited for a purchase consideration of INR100m, taking its
total holding in the company to ~60.07%.

5 February 2024 6
 Varun Beverages

Valuation and view

 We expect VBL to maintain its earnings momentum, aided by: 1) increased
penetration in newly acquired territories in India and Africa, 2) higher
acceptance of newly launched products, 3) continued expansion in capacity and
distribution reach, 4) growing refrigeration in rural and semi-rural areas, and 5)
a scale-up in international operations.
 We expect a CAGR of 23%/23%/29% in revenue/EBITDA/PAT over CY23-25.
 While we maintain our CY24 earnings, we increase our CY25 earnings estimate
by 7%, integrating the recently acquired South African beverage company
BevCo’s financials (assumed only six months of integration in CY24) and also
increasing volume growth estimate of its existing business to 16%/14% for
CY24/25 from 14%/13% earlier estimated. However, higher interest cost led by
increase in debt (capex and acquisition led increase) partly offsets the increase
in earnings.
 We value the stock at 57x CY25E EPS to arrive at a TP of INR1,500. We
reiterate our BUY rating on the stock.

Exhibit 11: Revision in our estimates

Earnings change Old New Change
(INR m) CY23E CY24E CY25E CY23E CY24E CY25E CY23E CY24E CY25E
Revenue 1,60,485 1,87,565 2,16,908 1,60,426 2,00,086 2,43,747 0% 7% 12%
EBITDA 36,018 42,765 49,889 36,095 44,662 54,843 0% 4% 10%
Adj. PAT 20,602 25,731 31,709 20,559 25,752 34,021 0% 0% 7%

5 February 2024 7
 Varun Beverages

Financials and valuations

Consolidated - Income Statement - (INRm)

Y/E December CY18 CY19 CY20 CY21 CY22 CY23 CY24E CY25E
Total Income from Operations 51,053 71,296 64,501 88,232 1,31,731 1,60,426 2,00,086 2,43,747
Change (%) 27.5 39.7 -9.5 36.8 49.3 21.8 24.7 21.8
RM Cost 22,441 32,194 27,639 40,347 62,612 74,049 92,640 1,12,611
Employees Cost 5,830 8,108 8,897 10,077 12,166 14,466 17,765 21,450
Other Expenses 12,716 16,517 15,946 21,262 29,072 35,816 45,019 54,843
Total Expenditure 40,987 56,819 52,483 71,686 1,03,850 1,24,331 1,55,424 1,88,904
% of Sales 80.3 79.7 81.4 81.2 78.8 77.5 77.7 77.5
EBITDA 10,066 14,477 12,019 16,546 27,881 36,095 44,662 54,843
Margin (%) 19.7 20.3 18.6 18.8 21.2 22.5 22.3 22.5
Depreciation 3,851 4,886 5,287 5,313 6,172 6,809 8,758 9,824
EBIT 6,215 9,590 6,732 11,234 21,709 29,286 35,904 45,019
Int. and Finance Charges 2,126 3,096 2,811 1,847 1,861 2,681 3,441 2,397
Other Income 218 425 370 679 388 794 1,201 1,706
PBT bef. EO Exp. 4,308 6,919 4,290 10,066 20,236 27,398 33,663 44,328
EO Items 0 0 -665 0 0 0 0 0
PBT after EO Exp. 4,308 6,919 3,625 10,066 20,236 27,398 33,663 44,328
Total Tax 1,339 2,241 52 2,606 4,735 6,375 7,406 9,752
Tax Rate (%) 31.1 32.4 1.4 25.9 23.4 23.3 22.0 22.0
Share of profit from associates 30 44 0 0 0 -5 0 0
Minority Interest 70 32 283 520 527 459 505 555
Reported PAT 2,928 4,690 3,290 6,941 14,974 20,559 25,752 34,021
Adjusted PAT 2,928 4,690 3,251 6,941 14,974 20,559 25,752 34,021
Change (%) 39.3 60.1 -30.7 113.5 115.8 37.3 25.3 32.1
Margin (%) 5.7 6.6 5.0 7.9 11.4 12.8 12.9 14.0

Consolidated - Balance Sheet (INRm)

Y/E December CY18 CY19 CY20 CY21 CY22 CY23 CY24E CY25E
Equity Share Capital 1,826 2,887 2,887 4,330 6,496 6,496 6,496 6,496
Total Reserves 18,158 30,397 32,353 36,469 44,528 62,869 85,373 1,16,146
Net Worth 19,985 33,284 35,240 40,799 51,024 69,365 91,869 1,22,642
Minority Interest 78 307 648 1,168 1,131 1,482 1,986 2,542
Total Loans 27,649 34,172 32,059 33,418 36,948 51,944 53,944 25,944
Deferred Tax Liabilities 1,588 2,697 2,149 3,087 3,368 3,430 3,430 3,430
Capital Employed 49,299 70,459 70,096 78,473 92,471 1,26,221 1,51,230 1,54,558
Gross Block 61,697 87,203 90,086 94,420 1,06,807 1,28,385 1,73,625 1,83,625
Less: Accum. Deprn. 17,847 22,655 26,242 31,555 37,727 44,536 53,294 63,118
Net Fixed Assets 43,850 64,548 63,844 62,865 69,080 83,849 1,20,331 1,20,507
Goodwill on Consolidation 19 242 242 242 242 242 4,202 4,202
Capital WIP 3,524 638 668 4,966 6,066 19,222 8,222 8,222
Total Investments 112 0 0 0 0 211 211 211
Current Investments 0 0 0 0 0 211 211 211
Curr. Assets, Loans&Adv. 12,808 18,327 19,719 27,721 40,794 48,347 52,599 63,214
Inventory 5,784 8,815 9,288 14,481 19,939 21,505 26,883 32,674
Account Receivables 1,280 1,726 2,418 2,212 2,993 3,594 4,482 5,460
Cash and Bank Balance 935 1,711 1,901 3,366 2,853 4,599 2,225 3,142
Loans and Advances 4,809 6,076 6,113 7,661 15,009 18,649 19,008 21,937
Curr. Liability & Prov. 11,015 13,297 14,378 17,322 23,711 25,651 34,336 41,798
Account Payables 3,168 4,777 5,114 7,118 8,243 7,582 10,645 12,939
Other Current Liabilities 6,435 6,517 6,893 7,622 13,135 15,117 20,009 24,375
Provisions 1,412 2,003 2,371 2,583 2,333 2,952 3,682 4,485
Net Current Assets 1,793 5,031 5,342 10,399 17,083 22,696 18,263 21,416
Appl. of Funds 49,299 70,459 70,096 78,473 92,471 1,26,221 1,51,230 1,54,558

5 February 2024 8
 Varun Beverages

Financials and valuations

Ratios
Y/E December CY18 CY19 CY20 CY21 CY22 CY23 CY24E CY25E
Basic (INR)
EPS 2.3 3.6 2.5 5.3 11.5 15.8 19.8 26.2
Cash EPS 5.2 7.4 6.6 9.4 16.3 21.1 26.6 33.7
BV/Share 15.4 25.6 27.1 31.4 39.3 53.4 70.7 94.4
DPS 0.4 0.5 0.6 0.8 1.7 2.5 2.5 2.5
Payout (%) 17.5 16.7 21.9 15.6 15.2 15.8 12.6 9.5
Valuation (x)
P/E 577.7 360.7 520.4 243.7 113.0 82.3 65.7 49.7
Cash P/E 249.5 176.7 198.1 138.1 80.0 61.8 49.0 38.6
P/BV 84.6 50.8 48.0 41.5 33.2 24.4 18.4 13.8
EV/Sales 33.7 24.2 26.7 19.5 13.1 10.8 8.7 7.0
EV/EBITDA 170.7 119.1 143.3 104.1 61.9 48.2 39.1 31.3
Dividend Yield (%) 0.0 0.0 0.0 0.1 0.1 0.2 0.2 0.2
FCF per share 1.5 4.4 5.5 2.8 3.4 -6.2 1.2 25.3
Return Ratios (%)
RoE 15.5 17.6 9.5 18.3 32.6 34.2 31.9 31.7
RoCE 10.0 11.8 10.4 12.5 20.9 22.1 21.7 24.8
RoIC 10.1 11.5 9.8 12.1 21.6 24.2 23.1 24.8
Working Capital Ratios
Fixed Asset Turnover (x) 0.8 0.8 0.7 0.9 1.2 1.2 1.2 1.3
Asset Turnover (x) 1.0 1.0 0.9 1.1 1.4 1.3 1.3 1.6
Inventory (Days) 41 45 53 60 55 49 49 49
Debtor (Days) 9 9 14 9 8 8 8 8
Creditor (Days) 23 24 29 29 23 17 19 19
Leverage Ratio (x)
Current Ratio 1.2 1.4 1.4 1.6 1.7 1.9 1.5 1.5
Interest Cover Ratio 2.9 3.1 2.4 6.1 11.7 10.9 10.4 18.8
Net Debt/Equity 1.3 1.0 0.9 0.7 0.7 0.7 0.6 0.2

Consolidated - Cash Flow Statement (INRm)

Y/E December CY18 CY19 CY20 CY21 CY22 CY23 CY24E CY25E
OP/(Loss) before Tax 4,308 6,919 3,625 10,066 20,236 27,398 33,663 44,328
Depreciation 3,851 4,826 5,287 5,313 6,172 6,809 8,758 9,824
Interest & Finance Charges 1,986 2,948 2,441 1,168 1,473 2,681 2,241 690
Direct Taxes Paid -733 -1,201 -52 -2,606 -4,735 -6,679 -7,406 -9,752
(Inc)/Dec in WC -501 -827 -1,181 -1,627 -5,246 -6,735 2,059 -2,235
CF from Operations 8,911 12,665 10,120 12,314 17,900 23,474 39,315 42,855
Others 1,087 411 0 0 0 434 505 0
CF from Operating incl EO 9,998 13,076 10,120 12,314 17,900 23,908 39,820 42,855
(Inc)/Dec in FA -8,088 -7,331 -2,913 -8,632 -13,487 -31,939 -38,200 -10,000
Free Cash Flow 1,910 5,745 7,207 3,682 4,414 -8,031 1,620 32,855
(Pur)/Sale of Investments 0 0 0 0 0 -216 0 0
Others -647 -15,862 -1,798 -1,474 -3,559 -744 1,201 1,706
CF from Investments -8,734 -23,192 -4,711 -10,106 -17,046 -32,899 -36,999 -8,294
Issue of Shares 7 9,002 0 0 0 44 0 0
Inc/(Dec) in Debt 4,566 6,487 -2,113 1,359 3,530 15,064 2,000 -28,000
Interest Paid -1,886 -3,011 -2,811 -1,847 -1,861 -2,694 -3,441 -2,397
Dividend Paid -456 -690 -722 -1,083 -2,274 -2,273 -3,248 -3,248
Others -3,505 -895 427 829 -763 596 -505 0
CF from Fin. Activity -1,273 10,893 -5,219 -742 -1,368 10,737 -5,194 -33,645
Inc/Dec of Cash -10 776 190 1,466 -514 1,746 -2,374 917
Opening Balance 945 935 1,711 1,901 3,367 2,853 4,599 2,225
Closing Balance 935 1,711 1,901 3,367 2,853 4,599 2,225 3,142

Investment in securities market are subject to market risks. Read all the related documents carefully before investing

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NOTES

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Explanation of Investment Rating

Investment Rating Expected return (over 12-month)
BUY >=15%
SELL < - 10%
NEUTRAL < - 10 % to 15%
UNDER REVIEW Rating may undergo a change
NOT RATED We have forward looking estimates for the stock but we refrain from assigning recommendation
*In case the recommendation given by the Research Analyst is inconsistent with the investment rating legend for a continuous period of 30 days, the Research Analyst shall be within following 30 days take
appropriate measures to make the recommendation consistent with the investment rating legend.
Disclosures
The following Disclosures are being made in compliance with the SEBI Research Analyst Regulations 2014 (herein after referred to as the Regulations).
Motilal Oswal Financial Services Ltd. (MOFSL) is a SEBI Registered Research Analyst having registration no. INH000000412. MOFSL, the Research Entity (RE) as defined in the Regulations, is engaged in
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1 MOFSL, Research Analyst and/or his relatives does not have financial interest in the subject company, as they do not have equity holdings in the subject company.
2 MOFSL, Research Analyst and/or his relatives do not have actual/beneficial ownership of 1% or more securities in the subject company
3 MOFSL, Research Analyst and/or his relatives have not received compensation/other benefits from the subject company in the past 12 months
4 MOFSL, Research Analyst and/or his relatives do not have material conflict of interest in the subject company at the time of publication of research report
5 Research Analyst has not served as director/officer/employee in the subject company
6 MOFSL has not acted as a manager or co-manager of public offering of securities of the subject company in past 12 months
7 MOFSL has not received compensation for investment banking/ merchant banking/brokerage services from the subject company in the past 12 months
8 MOFSL has not received compensation for other than investment banking/merchant banking/brokerage services from the subject company in the past 12 months
9 MOFSL has not received any compensation or other benefits from third party in connection with the research report
10 MOFSL has not engaged in market making activity for the subject company
********************************************************************************************************************************
The associates of MOFSL may have:
- financial interest in the subject company
- actual/beneficial ownership of 1% or more securities in the subject company at the end of the month immediately preceding the date of publication of the Research Report or date of the public
appearance.
- received compensation/other benefits from the subject company in the past 12 months
- any other potential conflict of interests with respect to any recommendation and other related information and opinions.; however the same shall have no bearing whatsoever on the specific
recommendations made by the analyst(s), as the recommendations made by the analyst(s) are completely independent of the views of the associates of MOFSL even though there might exist an
inherent conflict of interest in some of the stocks mentioned in the research report.
- acted as a manager or co-manager of public offering of securities of the subject company in past 12 months
- be engaged in any other transaction involving such securities and earn brokerage or other compensation or act as a market maker in the financial instruments of the company(ies) discussed herein or
act as an advisor or lender/borrower to such company(ies)
- received compensation from the subject company in the past 12 months for investment banking / merchant banking / brokerage services or from other than said services.
- Served subject company as its clients during twelve months preceding the date of distribution of the research report.

The associates of MOFSL has not received any compensation or other benefits from third party in connection with the research report
Above disclosures include beneficial holdings lying in demat account of MOFSL which are opened for proprietary investments only. While calculating beneficial holdings, It does not consider demat accounts
which are opened in name of MOFSL for other purposes (i.e holding client securities, collaterals, error trades etc.). MOFSL also earns DP income from clients which are not considered in above disclosures.

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 Varun Beverages

Analyst Certification
The views expressed in this research report accurately reflect the personal views of the analyst(s) about the subject securities or issues, and no part of the compensation of the research analyst(s) was, is,
or will be directly or indirectly related to the specific recommendations and views expressed by research analyst(s) in this report.
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to change without any prior notice. The Company reserves the right to make modifications and alternations to this statement as may be required from time to time without any prior approval. MOFSL, its
associates, their directors and the employees may from time to time, effect or have effected an own account transaction in, or deal as principal or agent in or for the securities mentioned in this document.
They may perform or seek to perform investment banking or other services for, or solicit investment banking or other business from, any company referred to in this report. Each of these entities functions as
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This report is meant for the clients of Motilal Oswal only.
Investment in securities market are subject to market risks. Read all the related documents carefully before investing.
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Registered Office Address: Motilal Oswal Tower, Rahimtullah Sayani Road, Opposite Parel ST Depot, Prabhadevi, Mumbai-400025; Tel No.: 022 - 71934200 / 71934263; www.motilaloswal.com.
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[email protected], for DP to [email protected].

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