Nestle India reported a net profit of Rs 698.34 crore for the quarter ended on June 30, 2023, a jump of 37 per cent on a year-on-year (YoY) basis. The company had clocked a profit bottomline of Rs 510.24 crore in the same quarter a year ago, the company said in its statement.
Nestle India's revenue from operations increased about 17 per cent on YoY basis 4,658.5 crore in the June 2023 quarter, which was Rs 4,045.7 crore in the same quarter previous year, the company statement added. The results are in-line with the street's expectations.
"We have delivered a robust performance, with all product groups registering double digit growth. This is the fifth quarter in a row of double-digit growth across all product groups. Domestic sales growth is broad based and grew by 14.6 per cent, on the back of prudent pricing and supported by mix and volume with targeted brand support. Key brands continued to perform well," said Suresh Narayanan, Chairman and Managing Director at Nestle India in a statement.
Nestle announced its tenth factory in Odisha after receiving an 'in-principle' approval from Industrial Promotion & Investment Corporation of Odisha Limited (IPICOL). 'Make in India' has always remained the cornerstone of our industrial footprint strategy and I am pleased to announce that Odisha has been identified as the state that will be home to Nestlé India’s tenth factory, Narayanan added. "Like all our other factories, the Odisha factory too will remain committed to serve the local communities through relevant societal initiatives."
Following the announcement of results, shares dropped more than 3 per cent to Rs 22,081.75 on Thursday, before making a partial recovery. The company was commanding a total market capitalization of Rs 2.15 lakh crore. The scrip had settled at Rs 22,804.45 on Wednesday.
The FMCG major reported a total sales growth at 15 per cent YoY, while domestic sales growth stood at 14.6 per cent YoY. Profit from operations stood at 20.7 per cent for the sales. EPS for the company came in at Rs 72.43 for the given period.
The company board of Nestle India also approved the change of financial year to April 1 to March 31, subject to necessary approvals. It currently follows January 1 to December 31, as its financial year. "Accordingly, the current financial year of the company shall be extended upto March 31, 2024 covering a period of 15 months commencing from January 1 2023," it said.
For the six month ended on June 30, 2023, the company reported a net profit at Rs 1,435 crore, with a revenue from operations at Rs 9,489 crore.
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