Nestle India's third quarter net profit is expected to fall 26.7 percent year-on-year to Rs 228 crore due to absence of Maggi noodles, according to analysts polled by CNBC-TV18.
Revenue is likely to decline 20 percent to Rs 2,055 crore from Rs 2,570 crore in same period.
Analysts expect Q3 to see full impact of absence of Maggi. Maggi is estimated to have had 20-25 percent contribution to revenue in the past.The company follows calendar year as its financial year.
They expect steady 5-10 percent growth in ex-Maggi portfolio. Negative rub off effect of Maggi on other brands volumes may also be closely watched.
Operating profit may fall 17.8 percent year-on-year to Rs 380 crore but margin may expand 50 basis points to 18.5 percent in the quarter gone by.
Subdued raw material cost is likely to supported margin but margin may be impacted owing to high fixed costs related to Maggi manufacturing facilities.
Nestle may also see higher costs related to legal, testing, disposal and advertising.
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