Nestle Q2 net profit rises 10 percent to Rs 271 crore
Nestle India reported a 10.33 percent incrase in net profit to Rs 271.38 crore for Q2 ended in June. This was on the back of robust sales growth across business verticals.
July 26, 2013 / 23:30 IST
FMCG major Nestle India today reported a 10.33 percent increase in net profit to Rs 271.38 crore for the second quarter ended June 30 due to robust sales growth across various business verticals.
The company had posted a net profit of Rs 245.97 crore during the same period of the previous year.
Also read: Fundamentals don't warrant HUL, Nestle jump: ICICI DirectNet sales climbed 11.4 percent to Rs 2,213.21 crore for the second quarter, as against Rs 1,986.58 crore a year earlier, Nestle India said in a statement.
The company said domestic sales increased 9.2 percent on account of net realisations and volume growth in certain product categories, while overseas sales grew 46.9 percent due to exports to affiliates.
Commenting on the results, Nestle India Chairman and Managing Director A Helio Waszyk said key businesses, including noodles, coffees and nutrition, are doing well. The launch of Alpino, a premium chocolate brand, is another step in the premiumisation the company's portfolio, he said. "Given the challenging environment, there is more work to be done in some businesses and I am confident that the team is well aligned and capable of delivering growth consistent with the economic environment," Waszyk added.
The company's board approved an interim dividend of Rs 18 per equity share of Rs 10 each for the year 2013. "The interim dividend for 2013 will be paid on and from August 12, 2013," Nestle said. During the quarter, there was no additional drawdown of the loan from Nestle SA under the ECB approval from Reserve Bank of India.
"The total amount outstanding on this account continues to be USD 192 million since June 2012," the company said.
Shares of Nestle today closed at Rs 5,447.35 on the BSE, down 2.05 percent. Discover the latest Business News, Sensex, and Nifty updates. Obtain Personal Finance insights, tax queries, and expert opinions on Moneycontrol or download the Moneycontrol App to stay updated!
