Nestle India, the house of Kitkat chocolates and Maggi noodles, reported a net profit of Rs 736 crore for the March quarter, making a 24.7 percent jump over the year-ago period.
This is a big beat on estimates that had pegged the Nestle net profit at Rs 674 crore. The company follows a January to December financial year.
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Revenue from operations jumped 21.3 percent year-on-year to Rs 4,830 crore. On the operating front, EBITDA (earnings before interest, taxes, depreciation and amortization) came in at Rs 1,098 crore, up 18 percent.
Margins at 22.7 percent were lower than 23.4 percent in the year-ago period. Estimates had pegged margin at 23 percent. The company expects cost of fresh milk, fuels, and green coffee to remain firm because of continued increase in demand and volatility.
Soon after the results announcement, the stock took a sharp knock falling over 1.5 percent at 11 am. But, it recovered to trade flat by 11:15 am.
"This is the highest growth for the company in a quarter in the last 10 years (excluding the exceptional quarter in 2016 which was off a low base in 2015). All our product groups delivered double digit growth, a notable feature in these past four quarters in a row," Suresh Narayanan, Chairman and Managing Director, Nestle India said.
NESCAFE recorded its highest ever market share in the quarter, as per the press release. The company's exports also grew 25 percent YoY to Rs 195.6 crore in the quarter gone by. As per analyst calculations, volume growth for the company was 5 percent YoY while the Street was expecting only 3 percent due to impact on Maggi Chotu packs.
"Confectionery led by KITKAT, and MUNCH posted a strong growth, supported by consumer led campaigns, innovation and engagement," Narayanan added.
Dividend
The company's board has declared an interim dividend for 2023 of Rs 27 per equity share amounting to Rs 260 crore. The dividend will be paid on and from 8th May 2023 along with the final dividend for 2022 of Rs 75 per share.
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