Nestle India slips after weak Q1 numbers

Nestle India fell 1.74% to Rs 4,767.05 at 9:24 IST on BSE after net profit declined 7.14% to Rs 259.16 crore on 2.91% rise in net sales to Rs 2313.46 crore in Q1 March 2014 over Q1 March 2013.

The result was announced after trading hours on Tuesday, 13 May 2014.

Meanwhile, the BSE Sensex was down 32.91 points, or 0.14%, to 23,838.32.

On BSE, so far 346 shares were traded in the counter, compared with an average volume of 7,071 shares in the past one quarter.

The stock hit a high of Rs 4,800 and a low of Rs 4,735 so far during the day. The stock hit a record high of Rs 5,864.85 on 18 July 2013. The stock hit a 52-week low of Rs 4,589 on 29 August 2013.

The stock had underperformed the market over the past one month till 13 May 2014, rising 0.46% compared with 5.49% rise in the Sensex. The scrip had also underperformed the market in past one quarter, falling 4.97% as against Sensex's 18.21% rise.

The large-cap company has an equity capital of Rs 96.42 crore. Face value per share is Rs 10.

Net domestic sales grew by 3.4% while export sales declined by 4.4% largely due to export related to affiliates. The operating margins have been adversely impacted by high price of milk solids and increased demand generating spends on the base of a stronger quarter last year, Nestle India said in a statement.

Commenting on the results for the first quarter of 2014, Mr. Etienne Benet, managing director said, "The first quarter results are broadly as expected and in line with our strategy which was alluded to in my comments while announcing the full year 2013 results. We will continue to take the right decisions in the short and medium term to ensure that we consistently move towards our ambition of being recognized as the leader of nutrition, health and wellness in India while maintaining healthy overall performance."

Nestle India is a subsidiary of Nestle S.A. of Switzerland. It manufactures milk products and other food products.

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