Nestle India fell 2.54% to Rs 6,983.25 at 9:56 IST on BSE after the company reported net profit of Rs 230.84 crore for Q2 June 2016 as against net loss of Rs 64.40 crore for Q2 June 2015.
The company announced the results after market hours on Friday, 29 July 2016.Meanwhile, the BSE Sensex was up 193.49 points, or 0.69%, to 28,245.35.
On BSE, so far 2,397 shares were traded in the counter, compared with an average volume of 3,447 shares in the past one quarter. The stock hit a high of Rs 7,230 and a low of Rs 6,877.20 so far during the day. The stock hit 52-week high of Rs 7,390 during the previous trading session on Friday, 29 July 2016, ahead of the announcement of the second quarter earnings. The stock hit a 52-week low of Rs 4,990 on 29 February 2016. The stock had outperformed the market over the past one month till 29 July 2016, rising 11.2% compared with 4.9% rise in the Sensex. The scrip had also outperformed the market in past one quarter, rising 24.75% as against the Sensex's 9.55% rise.
The large-cap company has an equity capital of Rs 96.42 crore. Face value per share is Rs 10.
Nestle India's net sales rose 16.66% to Rs 2256.09 crore in Q2 June 2016 over Q2 June 2015. The results for the quarter and half year ended 30 June 2016 are not entirely comparable with the results of the corresponding periods due to Maggi noodles issue in 2015, the company said in a statement. The company attributed increase in sales to base effect. The company's sales in Q2 June 2015 were adversely impacted by the Maggi noodles issue. Nestle relaunched Maggi noodles in the market at the beginning of November 2015 after it withdrew the product from the market in June 2015 amid allegations that it contained high levels of lead. The company's domestic sales increased by 17.5% and exports increased by 7% in Q2 June 2016 over Q2 June 2015.
Suresh Narayanan, chairman and managing director of Nestle India, said it is heartening to see Maggi noodles rebound to market leadership of about 57% after its reintroduction last November. To harness growth opportunities across categories, the company 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, Narayanan said.
Nestle India is a subsidiary of Nestle S.A. of Switzerland. Nestle S.A. currently holds 62.76% stake in Nestle India (as per the shareholding pattern as at 30 June 2016).
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