Nestlé India raises profit and margins while shares fall
Nestlé India’s standalone quarterly profit rose 36.4 per cent, beating the expectation in an analyst poll. Revenue and operating earnings also exceeded those estimates, while the operating margin widened. The food company’s shares nevertheless traded lower during the session. The financial results cover the quarter ending in September; the quoted share price is an intraday observation.
Economics & Markets··Evening
Standalone profit outpaces the poll estimate
Nestlé India, the Indian food company, announced higher profit and revenue for the quarter ended in September. Its standalone accounts showed net profit rising 36.4 per cent to 1,027 crore rupees from 753 crore rupees a year earlier. A crore means 10 million. The increase came with stronger revenue and a wider operating margin.[1]
The company announced the quarterly results on 15 October. Its standalone profit exceeded the 1,008 crore rupees projected in the ET Now poll. Higher quarterly profit and revenue were also reported in its consolidated accounts.[1], [2]
Revenue and operating margin rise
Standalone revenue grew 20.3 per cent, from 5,644 crore rupees to 6,788 crore rupees, compared with a poll estimate of 6,755 crore rupees. Earnings before interest, taxes, depreciation and amortisation rose 31 per cent to 1,614 crore rupees. That measure’s margin widened from 21.8 per cent to 23.8 per cent, an increase of 200 basis points.[1]
Shares trade lower despite the earnings increase
During the trading session, Nestlé India shares stood at 1,323.50 rupees on India’s National Stock Exchange, down 4.32 per cent from the preceding close. This was an intraday price. The results cover the company’s second fiscal quarter, ending on 30 September, against the corresponding quarter of the preceding financial year.[1]
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