Nestlé India’s First Quarter Profit Beats Estimates
Nestlé India Ltd.’s first quarter net profit beat estimates helped by healthy volume growth and lower commodity prices.
The Kit-Kat maker’s earnings rose 38 percent to Rs 424 crore, it said in an exchange filing today. That compares with Bloomberg estimates of Rs 381 crore. Its top line at Rs 2,760 crore was in line with estimates.
“We have sustained our growth momentum during the quarter, backed by broad volume-based growth across categories,” Chairman and Managing Director Suresh Narayanan said in a press release. Lower commodity prices, particularly milk and milk solids, kept the company’s raw material costs under check, the filing said.
The fast-moving consumer goods company will be adding breakfast cereals to their portfolio, Narayanan said.
- Total costs stood at Rs 2,170 crore.
- Other income earned stood at Rs 56.4 crore, positively affected by higher yield and average liquidity.
- Board declared an interim dividend of Rs 20 per equity share, totalling to Rs 192.8 crore, to be paid from June 1.
On May 8, Nestlé had been asked by the National Anti-Profiteering Authority to provisionally deposit the sum computed by the company gained from the reduction in the Goods and Services Tax rate in the Consumers Welfare Fund.