Nestle India's third quarter profit is expected to be at Rs 249 crore against Rs 124 crore in year-ago period, according to analysts polled by CNBC-TV18.
Earnings on yearly basis will see sharp uptick due to low base in Q2FY16 that impacted due to Maggi controversy and so did not include Maggi numbers. Hence, focus needs to be on sequential improvement.
Analysts expect sequential sales growth of 2 percent. Lower than 2 percent may be considered negative by the street.
Revenue is likely to increase 33 percent year-on-year to Rs 2,314 crore while operating profit may grow 52 percent to Rs 437.3 crore and margin may expand 240 basis points to 18.9 percent in Q2.
The company follows January-December as its financial year.
Other things to watch out for:-Maggi sales is expected at around Rs 380-400 crore for the quarter-Company launched Maggi in new variants – Atta noodles, Oat noodles & Maggi Hot Heads-Performance of non-Maggi portfolio (contributed 80-85 percent of sales)-Revenue may be aided by new product launches: GrekYo Yogurt, Sunrise Insta-Filter Coffee etc.-Commentary on performance of new launches, Maggi market share (Maggi has regained 57 percent of market share post re-launch)-Commentary on recently launched a new chain of branded outlets - Maggi Hot Spot
The stock recovered 40 percent from low of Rs 4990 seen at the time of Maggi controversy.
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