Nestle India March Quarter Results Review - Decent Beat On Both Growth Margins: Systematix

NDTV Profit’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 NDTV Profit’s subscribers an opportunity to expand their understanding of companies, sectors and the economy..Systematix Research Report.Nestle India Ltd. delivered a marginal beat on topline and a strong beat on Ebitda and profit after tax with revenue/Ebitda/profit after tax growth of 9%/22%/24%. Reported growth was broad-based across key brands, with volume growth of ~3% as per our estimate with strong contribution from pricing and mix. Domestic sales grew 8.9% YoY led by strong growth in core brands, targeted brand spends and traction in alternate channels like Out of Home, e-commerce and rurban markets. Gross margins improved sharply by 300 bps with moderation in raw material prices and continued premiumisation which flowed through to Ebitda which improved 270 bps YoY to 25.6%. The core brands seem to be responding well to the marketing and distribution initiatives of the company and strong execution is visible on the OOH and rurban initiatives. The innovation pipeline continued to churn out new launches under Maggi, Milk products and nutrition and Confectionary. Launch of Nespresso and joint venture with Dr. Reddy’s Laboratories Ltd. for nutritional health solutions should further strengthen the product portfolio..Click on the attachment to read the full report:.Nestle India March Quarter Results Review - Steady Performance; But Valuations Expensive: Motilal Oswal.DISCLAIMERThis report is authored by an external party. NDTV Profit does not vouch for the accuracy of its contents nor is responsible for them in any way. The contents of this section do not constitute investment advice. For that you must always consult an expert based on your individual needs. The views expressed in the report are that of the author entity and do not represent the views of NDTV Profit..Users have no license to copy, modify, or distribute the content without permission of the Original Owner.

Nestle India March Quarter Results Review - Decent Beat On Both Growth Margins: Systematix

Negative news flow-led weakness can provide buying opportunity

Choose a plan