Nestle India posts 38.4% rise in net profit at Rs 473 crore for Dec quarter

FMCG major Nestle India Ltd on Thursday reported a 38.40 per cent increase in net profit at Rs 473.02 crore for the quarter ended December, helped by volume growth. The company, which follows January-December financial year, had posted a net profit of Rs 341.76 crore in the corresponding quarter a year ago.

Net sales rose 8.75 per cent to Rs 3,130.74 crore during the quarter under review as against Rs 2,878.83 crore in the corresponding quarter last year, Nestle India said in a regulatory filing. Domestic sales rose 10.04 per cent to Rs 2,960.78 crore as against Rs 2,690.51 crore in October-December 2018.

However, exports declined 9.74 per cent to Rs 169.96 crore during the quarter under review from Rs 188.32 crore a year ago. Domestic sales increased through a combination of 'volume & mix', while exports dropped due to lower exports of coffee to Turkey, the company said in a statement.

Total income during October-December quarter rose 7.45 per cent to Rs 3,193.99 crore as against Rs 2,972.50 crore a year ago. Total expenses increased 5.26 per cent to Rs 2,579.37 crore as against Rs 2,450.30 crore. For the full year ended December 31, Nestle India's net profit rose 22.56 per cent to Rs 1,969.55 crore as against Rs 1,606.93 crore in the previous year.

Net sales for the year stood at Rs 12,295.27 crore, 9.62 per cent higher than Rs 11,216.23 crore in the year-ago period. Commenting on the annual results, Nestle India CMD Suresh Narayanan said, "We have delivered broad based volume and mix led growth. This is a trend we have demonstrated consistently in recent years."

Products like Maggi Noodles, KITKAT, Nestle MUNCH, CEREGROW, MAGGI Masala -ae- Magic, NESCAF RTD and NANGROW delivered strong performances during the year, he added.

"The trend of higher commodity prices witnessed in recent quarters is likely to continue in the near future," he said.

In a separate filing, Nestle India said its board in a meeting held on Thursday recommended final dividend of Rs 61 per equity share for the year 2019. Shares of Nestle India Ltd on Thursday settled 0.79 per cent lower at Rs 16,417.80 on the BSE.