FMCG major Nestle India ahead of its Q1 results to be announced later today surged 1.7% to day's high of Rs. 17880.20 apiece on the BSE. The company follows January to December as its financial year.
The profit at the firm is expected to increase 8-16% year-on-year in the quarter ended March on higher revenues and lower tax cost.
Revenue from operation at the firm may be hit during the period vis-à-vis in the corresponding period a year ago, impacted due to the nationwide lockdown due to coronavirus that started from March 25. There is expected a growth of 5-8% in revenue from operations during the March ended quarter.
Taking into consideration reduced corporate tax, provisioning of taxes is likely to be at 25.17% versus 33.4% in Q1FY19.
"We expect Nestle to post 7.7 percent growth in sales due to lockdown in the last eight to 10 days of the quarter. Though FMCG companies, dealers, retailers are allowed to work during the lockdown, labour & transportation shortage has impacted the manufacturing & logistics," said brokerage firm ICICI Direct.
Last, owing to weakness in the headline indices, the stock of Nestle India was trading lower by 0.14% or Rs. 23.90 at Rs. 17543.45 per share.