Nestle India Q4 Review - Steady Growth Outlook: Prabhudas Lilladher
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Prabhudas Lilladher Report
We are reducing Nestle India Ltd.’s CY21/22 earnings per share estimates by 4.6%/3.8% on the back of high employee cost witnessed during the quarter.
Double digit growth in key brands like Maggi, Kitkat and Nescafe along with improvement in out of home category bodes well for the company.
Q4 results were below expectations on account of lower coffee exports resulting in 7.7% de-growth in exports and increase in employee cost due to higher incentives on account of Covid-19 and finalization of long term compensation arrangements for factory employees.
We expect the company to invest incrementally in nutrition business in line with increased focus of the parent in wellness and nutrition segment.
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