Nestle India Q4 Review - Long-Term Prospects Remain Encouraging: Motilal Oswal

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Motilal Oswal Report

Nestle India Ltd.’s Q4 2020 sales were in line with our expectations.

Given the disappointments in the December 2020 quarter results of peers with high in-home consumption, the company’s 10.1% domestic sales growth was healthy.

This means that barring the Covid-19-led lockdown affected earnings in the June-20 quarter, domestic sales growth has been healthy for the rest of CY20.

While gross profit was in line, there was a miss at the Ebitda and profit after tax level, largely attributed to higher marketing costs in Q4 CY20 (as per its press release).

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