Rs 7 Per Share Dividend: Large Cap FMCG Giant Reports 4.4% YoY Surge In Net

Large cap FMCG sector stock, Nestle India shares recorded a rally of 1.06% intraday today to 2483.90 apiece on BSE. Nestle India today declared its financial results and recommended interim dividend too. Board of Directors of the FMCG giant declared third interim dividend of Rs 7/- per equity share of the face value of Re 1/- each for the FY 2023-24. Nestle India shares declined 1.05% in last 1-week and soared 31% in last 1-year. Check details below:

Nestle India Declares Dividend: As per the regulatory filing of the company, "Declaration of Third Interim Dividend of Rs. 7/- (Rupees Seven only) per equity share of the face value of Re. 1/- each for the Financial Year 2023-24 on the entire issued, subscribed and paid-up share capital of the Company of 964,157,160 equity shares of nominal value of Re. 1/- (Rupee one only) each. Third Interim Dividend for the Financial Year 2023-24 will be paid on and from 5th March 2024 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., 15th February 2024, as already intimated."

Nestle India Q4 Results: The company announced its net profit at Rs 655.6 crore for the quarter ended December 31, 2023, up 4.4% year-on-year (YoY) as compared to Rs 628 crore in the corresponding quarter of last year. Meanwhile, revenue from operations declared at Rs 4584 crore, up 8% year-on-year (YoY) for the fourth quarter. Nestle India follows January-December financial year.

The company's Earnings Before Interest Tax Depreciation and Amortisation (EBITDA) announced at Rs 1077 crore for the quarter under review, up 10.2% from the similar quarter last year. Gross margins surged 50 bps to 23.4% as against 22.9% in Q4FY23.

Nestlé SA seeks to leverage business services and specialised capabilities for relevant global markets from the NBS Division of the Company. The Board of Directors of the Company have approved slump sale of the NBS Division of the Company to Purina PetCare India Private Limited, a 100% subsidiary of Nestlé S.A., for an aggregate consideration of INR 79.8 crore. The transaction will be effective from 1st July 2024, subject to customary closing conditions. The Company will continue to receive the services of NBS Division at an arm's length basis and expects to improve its operational efficiencies, cost optimisation, automation and other benefits from the proposed enhanced business services operations, as per its BSE filing.

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. The 24.3% margin for the third quarter this year was 220 bps more than last year's 22.1% and and 90 bps more than Street estimates of 23.4%

Sub-Division/ Split Of Face Value Of Equity Shares: The company said, "On and from the Record Date of 5th January 2024, the equity shares of the Company were sub- divided, such that 1 (one) equity share having face value of Rs. 10/- (Rupees ten only) each, fully paid-up, stands sub-divided into 10 (ten) equity shares having face value of Re. 1/- (Rupee one only) each, fully paid-up, ranking pari-passu in all respects."

Nestle India Shares Performance & Return: The 52-week high price of Nestle India shares on BSE is Rs 2770.75 apiece and 52-week low price is Rs 1788.80 apiece, respectively. The company has a market capitalisation of Rs 2,40,803.07 crore. Nestle India shares gained 11% in last 6-months, rose 38% in last 2-years, and offered return of 46% in last 3-years. In last 5-years, Nestle India shares soared 113%.

About Nestle India: NESTLÉ India is a subsidiary of NESTLÉ S.A. of Switzerland. With eight factories and a large number of co-packers, Nestlé India is a vibrant Company that provides consumers in India with products of global standards and is committed to long-term sustainable growth and shareholder satisfaction, according to its official website.

Disclaimer:

The stock just highlights the Q4 results, dividend and is not a recommendation to buy, sell or hold. We have not done fundamental or technical analysis and have no opinion on the stock mentioned. Neither, the author nor Greynium Information Technologies should be held liable for any losses. Please consult a professional advisor.