Food and beverages major Nestle India’s March quarter net profit rose 6.8 per cent to Rs 306.8 crore, from Rs 287.3 crore a year ago.
Consolidated net sales grew 9.1 per cent to Rs 2,576 crore from Rs 2,361 crore in the year-ago period. Net sales was the highest of all quarters since September, 2014.
Strong volume growth helped domestic sales rise 9.7 per cent year-on-year to Rs 2,409 crore. Regaining market share by its flagship Maggi noodles and marginally better realisation from carry-over pricing boosted its topline, the company informed the BSE.
Its profitability, however, took a hit due to growing input costs, employee benefit expenses and excise duty. Its cost of materials went up 17.5 per cent to Rs 1,134 crore from Rs 965 crore, mainly on account of rising cost of milk and milk derivatives.
Employee benefit expenses grew 15.8 per cent due to implementation of a new compensation structure for factory workers, it said.
Suresh Narayanan, chairman and managing director, said, “Innovation and renovation, as also volume based growth, are core business strategies outlined by Nestlé India almost 18 months back and I am pleased that this is now playing an important role. We will leverage our expertise and strengths in science-based nutrition and explore the areas of micronutrient fortification for our mass consumption products. We embrace the challenges of the future, with its competitive intensity and rapidly changing consumer landscape, with dedication, excitement and energy.”
On Thursday, Nestle’s shareholder appointed Rama Bijapurkar as an independent non-executive director and Martin Roemkens as a whole-time director through voting. Nestle India’s stock closed 0.48 percent lower at Rs 6,819.55 in the Bombay Stock Exchange today. The firm released its results after the closing hours.