In response, shares of Nestle India are trading about 3.31% higher at ₹1,261.80 in Thursday’s session.
For the September quarter , Nestle India reported a net profit of ₹753 crore. CNBC-TV18’s poll expected the figure to be around ₹710 crore. When compared to the same quarter last year, Nestle India’s net profit decreased by 24% from ₹986 crore.Revenue for the quarter under review rose by 10.6% on-year to ₹5,644 crore, which is lower than our poll projection of ₹5,285 crore. The same was ₹5,104 crore in the year-ago period.
Nestle India’s Earnings Before Interest, Tax, Depreciation and Amortisation (EBITDA) stood at ₹1,237 crore, implying a growth of 6% year-on-year from ₹1,167.7 crore.
EBITDA margin for the quarter contracted by 100 basis points from the year-ago period to 21.9%, and also remained below the poll expectation of 22.1%.The management of Nestle India said that milk prices are expected to soften after the festive season, coinciding with the onset of the flush season.
Coffee prices are anticipated to stabilise and may decrease as the upcoming crops in Vietnam and India appear to be normal.
Global supply and demand for cocoa are projected to balance, primarily due to a concern in demand in the last two years.
Edible oil prices are expected to remain firm and may rise further due to a tight supply and demand at the global level.
“The recent amendments in the Goods and Services Tax (GST) rates announced by the Government of India is a positive step for consumers. It is expected to stimulate consumption, drive affordability and contribute to the overall growth of the FMCG sector and the economy. We have been working closely with our partners, distributors, wholesalers, and retailers, to pass on the benefits of the revised GST rates, across our product groups to our consumers,” said Manish Tiwary, Chairman and Managing Director of Nestlé India.
The Nestle India stock is at its 52-week high now and is trading at 62 times its estimated FY27 earnings.
