Nestle India first quarter net up 26.7%

Nestle India today posted a 26.7 per cent jump in the net profit for the first quarter ending March 2011. The company posted a net profit of Rs 255.7 crore in the three months ended March 2011 as compared to Rs 201.8 crore posted in the corresponding quarter previous year. The company follows January-December financial year.

The net sales for the quarter have increased by 22.3 per cent to Rs 1,809.9 crore over the same period of 2010. While domestic sales increased by 23.1 per cent to Rs 1,711.9 crore on account of volumes and selling prices, exports increased by 10.2 per cent to Rs 98 crore.

“We have maintained the momentum, achieving double digit profitable growth for the 17th consecutive quarter. This is even more significant considering the unprecedented cost pressures and, more specifically the volatile commodity prices. While we continue to invest for the future, particularly in manufacturing capacity and our brands, our people have addressed the challenges by accelerating innovation as well as ensuring appropriate balance between savings from Nestlé Continuous Excellence and pricing,” said Antonio Helio Waszyk, chairman and MD.

Nestle India also inaugurated its new plant in Mysore district of Karnataka in March with an investment of Rs 360 crore to manufacture a range of culinary products such as ketchups, pasta, instant noodles, mixed condiments and seasonings.

The company’s share price on the Bombay Stock Exchange (BSE) today closed at Rs 3,828.70, up 2.18 per cent as compared to the previous day’s close.

Nestlé India currently operates seven factories and employs around 6,000 people. Its net sales in 2010 were worth Rs 6,254.7 crore, a growth of 21.9 per cent over sales in 2009.