Nestle India declines after Q3 results

Nestle India fell 2.17% to Rs 10,381.45 at 10:21 IST on BSE after net profit rose 9.6% to Rs 341.76 crore on 11.2% increase in net sales to Rs 2,878.83 crore in Q4 December 2018 over Q4 December 2017.

The result was announced after market hours yesterday, 14 February 2019.

Meanwhile, the S&P BSE Sensex was down 130.78 points, or 0.36% to 35,745.44.

On the BSE, 6,568 shares were traded in the counter so far compared with average daily volumes of 4,559 shares in the past two weeks. The stock had hit a high of Rs 10730.10 and a low of Rs 10318.65 so far during the day. The stock hit a 52-week high of Rs 11,777 on 7 February 2019. The stock hit a 52-week low of Rs 7,429.50 on 15 February 2018.

Total sales increased by 11.2% while domestic sales grew 12% in the December quarter supported by volumes and was broad based, it said. Export sales remained flat due to lower exports to Bangladesh & United Arab Emirates.

Total sales and domestic sales for the year increased by 10.7% and 10.9% respectively. These growth rates were adversely impacted due to lower reported sales by the change in structure of indirect taxes.

Commenting on the results, Suresh Narayanan, chairman and managing director, Nestle India said that the firm has, once again, delivered volume led profitable growth. There was double digit growth in almost all the categories, supported by a step up in demand generating activities including on new products. Brands like Maggi, Nescafe, Kitkat, Munch and Everyday continued to deliver strong performances, he added.

NestlIndia is a subsidiary of NestlS.A. of Switzerland. Nestlis the world's largest food and beverage company. It has more than 2000 brands ranging from global icons to local favourites, and it is present in 191 countries around the world.

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