Nestle India Q3 profit up 5% at Rs 617 cr; board approves Rs 110 interim dividend

Food and beverages company Nestle India on Tuesday announced its financial results for the July-September quarter (Q3), in which the company recorded 5 per cent growth in net profit at Rs 617 crore vs Rs 538 crore in the same period a year ago. Nestle follows the January-December financial year system.

Nestle India reported the total sales growth at 9.6 per cent to Rs 3,864 crore for Q3 FY22 vs Rs 3,525 crore in Q3 FY21. The domestic sales growth stood at 10.1 per cent. Its overall growth is broad-based and largely driven by volume and mix, the company said in a stock exchange statement.

Nestle's export sales increased by 1.3 per cent during the quarter. The company's board of directors has declared a second interim dividend for 2021 of Rs 110 per equity share (face value Rs 10 per equity share) amounting to Rs 1,060 crore. It will be paid from November 16, 2021. Nestle said it is in addition to the first interim dividend of Rs 25 per equity share paid on May 19, 2021.

Suresh Narayanan, Chairman and Managing Director, Nestle India, said that Nestlé India continued its "path of robust and sustained double-digit growth" in not just the large metros, but also "small town Bharat".
"We are firmly and resolutely on a journey to accelerate it further by using a healthy mix of a customised portfolio, enhanced distribution infrastructure and deployment of resources, localised communication, enhanced visibility, and building consumer connect," he said.

In its outlook, Nestle India said that "price outlook for wheat, coffee, edible oils remain firm to bullish while the costs of packaging materials will continue to increase amid supply constraints, rising fuel and transportation costs".

Nestle India's profit in the previous quarter rose 10.6 per cent year-on-year (YoY) at Rs 538.58 crore. The FMCG major's revenue from operations grew 14 per cent at Rs 3,476.7 crore for Q2 FY22.

The Nestle India stock closed at Rs 19,406.55, down Rs 31.90 or 0.16 per cent, on Tuesday vs the previous session close of Rs Rs 19,438.45 on the National Stock Exchange (NSE).

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