Nestle India shares rose by over 3% after June quarter earnings

Shares of Nestle India on Monday rose by over 3 per cent after the company reported an increase of 10.83 per cent in net profit for the second quarter ended June 30.

The scrip of the company gained 3.25 per cent to close at Rs 11,799 on the BSE. During the day, it rose by 4.23 per cent to Rs 11,912.

On the NSE, shares went up by 3.23 per cent to close at Rs 11,781.

FMCG major Nestle India on Friday reported an increase of 10.83 per cent in net profit to Rs 437.84 crore for the second quarter ended June 30 led by sales and volume growth.

The company, which announced to invest around Rs 700 crore to set up a new factory in Sanand, Gujarat, had reported a profit of Rs 395.03 crore in the corresponding period of 2017-18.

Nestle would manufacture its range of popular instant noodles Maggi in the new factory and generate employment for around 400 persons, in which half of the strength would be women, it said in a statement.

The company, which follows January-December as its financial year, posted a net sales of Rs 2,982.83 crore, a rise of 11.35 per cent as compared with Rs 2,678.57 crore in the year-ago period.