Nestle India Q2 Review - Volume-Led Growth Continues; Valuation Caps Upside: Systematix
A shop assistant arranges packets of Maggi 2-Minute Noodles and Xtra-delicious Magical Masala, both manufactured by Nestle India Ltd., at a general store in Mumbai, India (Photographer Vivek Prakash/Bloomberg)

Nestle India Q2 Review - Volume-Led Growth Continues; Valuation Caps Upside: Systematix

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.

Systematix Research Report

Nestle India Ltd.’s Q2 CY21 results were in-line with our estimates driven by higher volumes, although on a low base of Q2 CY20.

On a two-year compound annual growth rate basis, domestic revenue growth was robust at 8%.

Nestle's key brands like Maggi Noodles (prepared dishes) and Kitkat and Munch (chocolates) continued to deliver double-digit revenue growth.

The management has effectively captured the e-commerce growth opportunity and the channel now contributes to 6.4% of domestic sales.

Gross margin expanded 67 basis points YoY despite input cost pressure while Ebitda margin contracted 11 bps YoY due to higher fuel prices.

Click on the attachment to read the full report:

Systematix Nestle India - Q2CY21 Result Update.pdf

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