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