Nestle reports 6.8% rise in Q1 net profit to Rs 307 crore
FMCG major Nestle India on Friday reported an increase of 6.76 per cent in net profit to Rs 306.76 crore for the first quarter this year, driven by volume growth across products including Maggi noodles. The company, which follows January-December period as financial year, had posted a net profit of Rs 287.32 crore for the March quarter of last fiscal.
Its net sales during the quarter under review were at Rs 2,575.74 crore, up 9.10 per cent as against Rs 2,360.80 crore a year ago, Nestle said in a BSE filing.
Nestlé India CMD Suresh Narayanan said: “Innovation and renovation, as also volume based growth, are core business strategies outlined by Nestlé India almost 18 months back and I am pleased that this strategy is now playing an important role.”
During the quarter, domestic sales moved up 9.74 per cent to Rs 2,409.34 crore as against Rs 2,195.46 crore in the corresponding period a year earlier.
“Domestic sales increased by 9.7 per cent mainly due to increase in volumes across product groups, including rebuild of the Maggi noodles, supplemented by marginally better realisations mostly from carry over pricing,” Nestle said. However, its exports were almost flat at Rs 166.40 crore as against Rs 165.34 crore. “The growth of 0.6 per cent in exports was largely impacted by lower sales to Nepal and Bhutan,” Nestle said.
Nestle’s total expenses in the first quarter were up 12.81 per cent at Rs 2,153.46 crore as against Rs 1,908.85 crore. The company’s stock settled at Rs 6,819.55, down 0.48 per cent, on BSE.