Nestle slips on lower-than-expected Q1 earnings

Quarterly results disappoint due to higher raw material, employees and taxation cost

Nestle India is trading lower by 3% at Rs 4,782 after fast moving consumer goods company has reported a lower-than-expected a 8% y-o-y rise in net profit at Rs 276 crore for the quarter ended March 2012 due to higher raw material, employees and taxation cost.

Analyst expected a net profit of Rs 29 crore from the maker of Maggi noodles and KitKat chocolates. Net sales grew 13% at Rs 2,048 crore on y-o-y basis.

"Domestic sales have been adversely impacted by the focus on product portfolio and channel optimisation to improve long term value," the company said in a filing to the stock exchanges.

The stock opened at Rs 4,940 and hit a low of Rs 4,765 on the Bombay Stock Exchange. A combined 10,589 shares have changed hands on the counter so far on both the exchanges.