Nestle India Ltd on Thursday reported a 8.95 per cent rise in its standalone net profit of Rs 986.43 crore for the quarter ended on September 30, 2024. The company had reported a bottomline of Rs 905.42 crore in the year ago period. It mostly missed the street's estimates of earnings.
Its revenue from operations increased marginally, about 1.33 per cent to Rs 5,104 crore for the September 2024 quarter. The company's operational income stood at Rs 5,036.82 crore in the same quarter previous year. Ebitda for the quarter came in at Rs 1,168 crore with margins coming in at 22.9 per cent for the reported period. Total sales grew 1.3 per cent, while domestic sales rose 1.2 per cent in the period.
Following the announcement of Q2 results, shares of Nestle India dropped more than 3.7 per cent to Rs 2,370.40 on Thursday, with a total market capitalization close to Rs 2.25 lakh crore. The scrip had settled at Rs 2,462.25 in the previous trading session on Wednesday.
In its commentary, the company management said that some key brands are witnessing pressure due to softer consumer demand and commodity prices remain elevated, especially for coffee and cocoa. However, its beverage business continued to do well and posted double digit growth. Milkmaid also reported growth in double-digits.
The company management added that milk prices and packaging is showing relative stability, while e-commerce growth accelerated sharply. The company also reported an exceptional gain of Rs 290 crore from sale of its businesses.
The company said that growth was spurred by noodles, beverages and overall premiumization. It was propelled by portfolio transformation, premiumization, new customer acquisition and driving reach beyond metros. The company continued to expand its footprint by introducing new SKUs across categories to Canada, Middle East, Maldives and Papua New Guinea.