Nestle India is expected to post a weak October-December quarter (Q4CY15) as Maggi sales will take time to fully recover. According to a CNBC-TV18 poll, net profit is seen down 28.8 percent at Rs 232 crore in Q4 from Rs 326 crore in corresponding quarter last fiscal. During the period, revenue may fall 18.8 percent at Rs 2055 crore against Rs 2531 crore in year-ago period.
In Q4, EBITDA is seen down 30.6 percent at Rs 398 crore versus Rs 574 crore while EBITDA margins may stand at 19.4 percent versus 22.7 percent (YoY). In this quarter, the FMCG gaint is expected to show marginal growth from ex-Maggi portfolio as Q4 will record only partial sales from the popular noodles brand. Maggi sales resumed only midway in the quarter.
Analysts polled by CNBC-TV18 feel that margin is likely to be impacted by high fixed costs, higher advertising spends.
Analysts will keep a keen watch on pick up in Maggi volumes in Q1CY16, pricing outlook in milk and nutrition products, quantum of price cuts to ramp up volumes and impact of Nepal blockade on exports.
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