Nestle India Q2 net up 10% at Rs 214 cr

Food products maker Nestle India today reported 9.75% increase in its net profit for the second quarter ended June 30, 2011 at Rs 213.83 crore compared to the corresponding quarter of the last fiscal.

The company's net profit for the three months ended June 30, 2010 stood at Rs 194.83 crore, it said in a statement.

Nestle's net sales for the second quarter of the current fiscal increased 20.20% to Rs 1,763.05 crore, compared to Rs 1,466.71 crore in the same period of last financial year.

"We have now, for the 18th consecutive quarter delivered profitable double-digit growth. This is clearly the result of consistent execution of our focused strategy by our people, who I believe are one of our main competitive advantages," Nestle India Chairman and MD Antonio Helio Waszyk said.

Domestic sales increased by 21% on account of volumes and selling prices and exports growth was 11%.

"The cost of materials for goods sold in percentage of net sales has increased largely due to higher commodity prices, mainly milk solids, green coffee and oils/fats, partially offset by an improved product/channel mix and operational efficiencies," the statement said.

Comparative period was favourably impacted by better fixed cost absorption due to stock build up, it added.