Nestle India net rises 1%

Nestle India’s consolidated net profit for the quarter ended March rose 1.2 per cent to Rs 279.09 crore, against Rs 275.7 crore in the corresponding period last year. Net sales rose 9.7 per cent to Rs 2,248 crore, compared with Rs 2,047.5 crore in the year-ago period.

Nestle India said the net profit for the quarter ended March wasn’t comparable to that in the year-ago period, as the company had been hit by changes in regulatory procedures. “These changes resulted in timing differences for certain provisions for contingencies that ‘reduced’ the net profit for the quarter,” it added.

The company’s net domestic sales rose 7.7 per cent, primarily on account of net realisations and product mix, it said in a statement.

The cost of materials for goods sold, as percentage of net sales, fell, largely due to higher sales realisations. However, this was partially offset by higher input costs, according to a company statement.

Finance costs increased due to higher average outstanding loans as well as the completion of major capital projects for capacity expansion, resulting in finance costs being charged to the income statement. In the year-ago period, these were treated as capital expenditure, Nestle India said.

“While facing several challenges, our concerted efforts are starting to show positive signals in certain categories. In others, it may take some more time. We expect some volatility to continue through 2013,” said A Helio Waszyk, chairman & MD.