Nestle India gains post Q1 results

At 11:59 AM, the stock was up 6% at Rs 6,040 on the BSE as compared to 1% decline in S&P BSE Sensex.

Nestle India has moved higher by 7% to Rs 6,099 on the BSE in an otherwise weak market after the company’s operating performance in the March quarter improved on a sequential basis.

The company said its operating profit margin improved by 400 basis points to 19.4% in March 2016 quarter (Q1, 2016) against 15.3% in December 2015 quarter (Q4, 2015).

On year on year (YoY) basis, net profit declined by 19% to Rs 259 crore in Q1, 2016 from Rs 320 crore in the corresponding quarter of previous year. It was Rs 183 crore in Q4, 2015. Net sales for the quarter were Rs 2,296 crore and decreased by 8.4% compared to the same period in 2015.

Suresh Narayanan, chairman and managing director, said: “Our results show further improvement in sequential performance, both in sales and margins. This is extremely satisfying as we move ahead and rebuild our business, particularly Maggi Noodles, after a tough year. Maggi has already regained leadership with over 50% of market share within five months of relaunch. I am delighted that in a survey of India’s brands by TRA in October/November 2015, it emerged as the most trusted in the FMCG category.”

Nestle India said it is gearing up for volume growth with renewed focus and commitment on consumer relevant innovation and renovation.

As per a press release, the company has recently launched four variants of Maggi noodles and plans to roll out Munch Nuts, Kitkat Duo, Nestle a+ Grekyo and Nescafe Sunrise Insta-Filter in the near term.

The board of directors of the company has declared interim dividend of Rs 12 per equity share for the year 2016. The same will be paid on and from May 31, 2016, it added.

At 11:59 AM, the stock was up 6% at Rs 6,040 on the BSE as compared to 1% decline in the benchmark S&P BSE Sensex. A combined 83,249 shares changed hands on the counter on the BSE