Nestle India Q1 Net Profit Jumps 13.54% YoY; Beats Estimates

Nestle India reported a 13.54% YoY jump in its consolidated net profit to Rs. 525.43 crore for the March quarter as against Rs. 462.74 crore in the same period last year.

The company follows January to December as its financial year.

Revenue from operations also witnessed a growth to Rs. Rs 3,325.27 crore from Rs 3,002.95 crore in the year-ago quarter.

During the review period, the growth in sales within the country was at 10.7% while the total sales growth came in at 10.8%. Profit from operations was 21.7% of overall sales.

Company remained resilient in the first quarter, as the numbers indicate, and delivered volume and mix led growth. Maggi, KitKat and Nestlé Munch delivered strong performances. Contribution from e-commerce went up significantly, while out of home sector performance was subdued. Commodity prices for milk and its derivates continued to be on the rise during the quarter," said Suresh Narayanan, Chairman and Managing Director, Nestlé India.

The company's tax outgo has been considerably lower by almost 60% during the quarter owing to revision in corporate tax rates. And this has positively supported company's profit as well as EPS.

Even amid the pandemic Nestle is standing by its inherent values of timely payments to MSMEs. Also, the company has honoured its all internship and job offers, added Narayanan.

Nestle India stock closed lower by 0.6% or Rs. 105 at Rs. 17462.05 on the BSE.

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