Nestle India’s net profit rose 13.5% to Rs 525.43 crore on a 10.8% rise in net sales to Rs 3305.78 crore in Q1 March 2020 over Q1 March 2019.
The net profit was boosted by lower tax rates. Tax expenses declined 24.1% to Rs 184.96 crore in Q1 March 2020 from Rs 243.84 crore posted in Q1 March 2019. Profit before tax (PBT) grew 0.5% to Rs 703.85 crore in Q1 March 2020 over Q1 March 2019.
Nestle said total sales increased by 10.8% while domestic sales increased by 10.7% driven by volume & mix in Q1 March 2020 over Q1 March 2019. Meanwhile, export surged by 12.9% year on year.
Commenting on the results and the prevailing environment, Suresh Narayanan, Chairman and Managing Director, Nestle India said, The company remained resilient in the first quarter, as the numbers indicate, and delivered volume and mix led growth. MAGGI, KITKAT and Nestle MUNCH delivered strong performances. Contribution from ecommerce went up significantly, while out of home sector performance was subdued. Commodity prices for milk and its derivates continued to be on the rise during the quarter.
Nestle India operates in the Food segment. The firm food business incorporates product groups, which include milk products and nutrition, beverages, prepared dishes and cooking aids, and chocolate and confectionery.
Shares of Nestle India were down 3.25% at Rs 16,890 on BSE. Nestle contniuned its losing run to third consecutive trading session. The stock has declined 5.1% in three trading days from its previous closing high of Rs 17,798.10 on 8 May 2020.
News Source: Buisness Standard