For the March quarter, Nestle India reported lower net profit of Rs259 crore due to higher costs, lower demand and exports
Nestle India Ltd (Nestle) reported a lower first quarter net profit mainly on higher raw material costs, subdued demand and lower exports.
For the quarter to end-March, the packaged food maker, said its net profit fell 7% to Rs259 crore from Rs279 crore, while its total revenues, including sales, grew 2.93% to Rs2,321.51 crore from Rs2,255.35 crore, same period last year.
“Operating margins have been adversely impacted by high price of milk solids. Its exports declined largely due to export to affiliates (Russia) as capacity was prioritised for domestic business,” Nestle said in a regulatory filing.
“The first quarter results are broadly as expected and in line with our strategy. We will continue to take the right decisions in the short and medium term while maintaining healthy overall performance,”said Etienne Benet, managing director, Nestle.
During the first quarter, Nestle said, its domestic sales grew 3.46% to Rs2,167.72 crore from Rs2,095.25 crore, its exports fell 4.36% to Rs146.17 crore from Rs152.83 crore a year ago period.
The company said its March quarter expenditure grew 6.08% to Rs1,904.22 crore from Rs1,795.03 crore, its raw material costs increased 18.79% to Rs1,150.12 crore, employee benefit expenses increased 6.78% to Rs167.48 crore while other expenses increased 8.42% to Rs573.24 crore.
Nestle declared an interim dividend of Rs12.50 per share.
At 3.09pm Wednesday, Nestle India was trading 1.9% down at Rs4752 on the BSE, while the S&P BSE Sensex was flat at 23,854.
For more stock results, check out this page
Inside story of the National Stock Exchange’s amazing success, leading to hubris, regulatory capture and algo scam
Fiercely independent and pro-consumer information on personal finance.
1-year online access to the magazine articles published during the subscription period.
Access is given for all articles published during the week (starting Monday) your subscription starts. For example, if you subscribe on Wednesday, you will have access to articles uploaded from Monday of that week.
This means access to other articles (outside the subscription period) are not included.
Articles outside the subscription period can be bought separately for a small price per article.
Fiercely independent and pro-consumer information on personal finance.
30-day online access to the magazine articles published during the subscription period.
Access is given for all articles published during the week (starting Monday) your subscription starts. For example, if you subscribe on Wednesday, you will have access to articles uploaded from Monday of that week.
This means access to other articles (outside the subscription period) are not included.
Articles outside the subscription period can be bought separately for a small price per article.
Fiercely independent and pro-consumer information on personal finance.
Complete access to Moneylife archives since inception ( till the date of your subscription )
