Nestle India's Q2 net down 11% at Rs 290 cr q-o-q

Company CMD says it's 'heartening' to see Maggi noodles rebound to market leadership of about 57% after its reintroduction last November

Nestle India on Friday said it made a net profit of Rs 231 crore for the quarter ended June 30, which was down 10.9% over the previous quarter ended March 31. In the corresponding quarter of last year, it suffered a loss of Rs 64.4 crore.

In terms of sales, the company reported a figure of Rs 2,256 crore for the period under review, which was down 1.7% sequentially, but up 16.7% over the corresponding quarter of the previous year.

But as Nestle India itself said the figures for the two periods were not exactly comparable as one of its flagship products, Maggi instant noodles, faced regulatory issues due to which the production was halted and sales withdrawn.

The company's Board of Directors have declared second interim dividend of Rs 12 per equity share amounting to Rs 115.7 crore, which will be paid on and from August 19. This is in addition to the first interim dividend of Rs 12 per equity share paid on May 31.

"It is heartening to see Maggi noodles rebound to market leadership of about 57% after its reintroduction last November. The Maggi brand has indeed shown resilience and consumer trust in its comeback," said Suresh Narayanan, Chairman and Managing Director, Nestle India.

"To harness growth opportunities across all our categories, we have unleashed significant Innovation & Renovation efforts by launching over 25 new products in the last couple of months. These launches and more to follow in due course of time, will contribute to the future growth of Nestle India," he added.

The company's shares closed at Rs 7,165.60 per share, down 0.79%, in the BSE on Friday.