Nestle falls 5% from day's high as Q4 profit slips; earnings decoded here

The consumer giant reported a net profit fall of 5 per cent to ₹885.4 crore in the January-March quarter

Shares of Nestle India slipped over 5 per cent from the day's high in Thursday's intraday session after it reported a 5 per cent year-on-year (Y-o-Y) decline in its net profit for the March quarter of the previous financial year. 

 

The fast-moving consumer goods major's stock fell as much as 5.4 per cent from its day's high of ₹2,515 per share. As of 12:12 PM, the counter was down 1.31 per cent at ₹2,401.8, compared to the 0.29 per cent decline in the Nifty50 index. 

 

The company's shares snapped their two-day gain on Thursday but have recovered over 11 per cent from their lows of ₹2,160, which it hit in early April. The stock has risen 11 per cent this year, compared to a 2.5 per cent advance in the benchmark Nifty50. The company has a total market capitalisation of ₹2.2 trillion, according to BSE data. The Nifty FMCG index was seen quoting 0.89 per cent lower at 56,972.  

 

 

Nestle Q4 results breakdown

 

The consumer giant reported a net profit fall of 5 per cent to ₹885.4 crore in the January to March quarter of the financial year 2025 (FY25), as compared to ₹934.1 crore in the same period last year. The fall in the bottom line came while the revenue from operations rose 4.5 per cent to ₹5,503.8 crore in the quarter under review. In the fourth quarter of the previous year, the company reported a revenue of ₹5,267.50 crore. 

 

However, the bottom line met the street's expectations as brokerages tracked by Business Standard expected Nestle's net profit to decline 9.12 per cent in the quarter ended March 31, 2025, on average, to ₹848.86 crore.

 

During the quarter, the company's operating margins or earnings before interest, taxes, depreciation and amortisation rose 3 per cent to ₹1,388.8 crore in the March quarter. The Ebita margin of Nestle contracted to 25.2 per cent from 25.6 per cent earlier. 

 

Meanwhile, Nestle reported their highest-ever domestic sales, having crossed the ₹5,235 crore mark, aided by improving volume growth. The March quarter also saw double-digit growth in beverages and confectionery, with three out of four product groups delivering healthy growth.  

 

Nestle's ₹6,500 crore capex plan

 

The FMCG giant said it will be investing ₹6,500 crore between 2020 and 2025 to develop new capabilities and capacities. "This not only demonstrates the strong demand for our products but also our commitment to manufacture in India and Make in India," Suresh Narayanan, chairman and managing director of Nestle India, said in the statement. "The Odisha factory, our 10th citadel of growth, is being set up with an initial investment of approximately ₹900 crore, in its first phase, to manufacture products from our foods (Prepared Dishes and Cooking Aids) portfolio."  

Nestle dividend announcement   The company announced a dividend of ₹10 per share for the financial year ended March 31, 2025.