BQ Blue’s special research section collates quality and in-depth equity and economy research reports from across India’s top brokerages, asset managers and research agencies. These reports offer BloombergQuint’s subscribers an opportunity to expand their understanding of companies, sectors and the economy.
Motilal Oswal Report
Nestle India Ltd.'s sales growth of 14% YoY in Q2 CY21 was lower than our expectation (up 17%), given the weak base in Q2 CY20 (up 1.7% YoY sales growth).
Two-year average sales growth slipped to 7.8%, lower than the 9-10% range seen in the preceding three quarters.
Rising palm oil and packaging costs led to lower than expected operating margin, resulting in a 5-6% miss to our Ebitda and profit before tax estimate.
Nestle India indicated in its press release that it has already invested Rs 10 billion of the Rs 26 billion capex program it had indicated earlier (planned over three to four years).
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