Nestle India Q3: Net Profit Jumps 37%, Board Declares Rs 140/Share Dividend

Nestle India Limited today declared a surge of 37% in its consolidated net profit to Rs 908 crore for the third quarter of this year as against Rs 668.3 crore declared an year ago. It announced a total revenue of Rs 5036 crore, up 9.5% as compared to Rs 4,601.8 crore a year ago, as per the BSE filing issued today.

The FMCG major also announced a hefty second interim dividend of Rs 140/- per equity share of Rs 10/- each for the year 2023. Nestle India has approved sub-division/stock split today.

Nestle India declared earnings before interest, taxes, depreciation, and amortization (EBITDA) at Rs 1,225 crore, up 21.3% as compared to Rs 1,009.6 crore declared an year ago.

Commenting on the results, Suresh Narayanan, Chairman and Managing Director, Nestlé India said, "I am pleased to share that we have, yet again, delivered consistent performance almost across all major brands. Domestic sales grew double digit, on account of mix, volume and price. Key brands continued to perform well, led by KITKAT, NESCAFÉ CLASSIC, NESCAFÉ SUNRISE, supported by MUNCH and MILKMAID. We are investing towards building our brand equity and have made strong and significant investments across all product groups. We crossed INR 5,000 crore turnover, which has been our first in any quarter in the history of the Company and a landmark for us."

Second Interim Dividend: According to the BSE filing of the company dated today, "Declaration of Second Interim Dividend of Rs. 140/- (Rupees one hundred forty only) per equity share of Rs. 10/- each for the year 2023 on the entire issued, subscribed and paid-up share capital of the Company of 9,64,15,716 equity shares of the nominal value of Rs. 10/- (Rupees ten only) each. Second Interim Dividend for the year 2023 will be paid on and from 16th November 2023 to those members whose names appear in the Register of Members of the Company and as beneficial owners in the Depositories, as on the Record Date fixed for the purpose i.e., 1st November 2023, as already intimated to the Stock Exchanges vide our letter PKR:SG: 61:23 dated 3rd October 2023."

Stock Split Approved: The company also stated in today's exchange filing, "Sub-division/ split of each equity share of face value of Rs. 10/- (Rupees ten only) each, fully paid-up into 10 (ten) equity shares of face value of Re. 1 /- (Rupee one only) each, fully paid-up by alteration of Capital Clause of the Memorandum of Association of the Company, subject to the approval of the members of the Company to be sought by means of Postal Ballot. The Record Date for sub-division/ split of existing equity shares will be intimated in due course. The detailed disclosure for sub-division/ split of existing equity shares of the Company, in terms of Regulation 30 of Listing Regulations read with SEBI Circular No. SEBI/HO/CFD/CFD-PoD-1/P/CIR/2023/123 dated 13th July 2023, is enclosed as Annexure A."

Meanwhile, Prabhudas Lilladher expressed his opinion on the FMCG sector, in its report dated October 18 and said, "We estimate our coverage universe (ex-ITC) to report Sales, EBIDTA and PAT growth of 10.2%/16.5%/10.8% YoY (8.6%/13.7%/11.1% including ITC) due benefits of soft commodity prices despite slow pick up in rural demand, even as urban demand remained resilient. APNT, KNPL, CLGT, PIDI and NEST will have strong profit growth due to meaningful margin expansion."