Nestle India bottom line takes 60 percent hit

Hit by the ban on sales of Maggi brand noodles, Nestle India Ltd on Thursday reported 60 percent fall in its net profit and 32 percent fall in its net sales for the third quarter.

The company follows calendar year as its financial year.

In a media statement filed with BSE, Nestle India said its net profit for the third quarter ended September 30, 2015 was Rs.124.2 crore, down from Rs.311.3 crore for the same period the previous year.

The company said it had posted a net sales of Rs.1,736.2 crore for the period under review down by 32 percent over 2014 figures.

The ban on sales of Maggi noodles impacted the domestic and export sales.

According to Suresh Narayanan, chairman and managing director, the company has restarted manufacturing noodles.

After testing the products in three accredited laboratories and their clearance the noodles the company is keen on reintroducing the products in the market, he said.

Narayanan said that during the quarter under review, the Bombay High Court had set aside the ban on Maggi noodles and ordered that the earlier batches be tested in three accredited laboratories.

As per the test results, the lead content in the product is well below the permissible levels, he said.