Nestle India Q2 PAT rises 11% YoY to Rs 539 crore, misses estimates
Nestle India on Wednesday posted a 10.6 per cent year-on-year (YoY) rise in June quarter profit at Rs 538.58 crore as against Rs 486.6 crore reported in the same quarter last year. Sequentially, however, the profit declined by 10.5 per cent compared with Rs 602.25 crore at the end of the March 2021 quarter.
The FMCG major’s revenue from operations for the quarter under review came in at Rs 3,476.7 crore as against Rs 3,050.48 crore posted in the corresponding quarter last fiscal, implying an upside of 14 per cent. On quarter-on-quarter basis, the figure was down 3.7 per cent from Rs 3,610.8 crore in the preceding quarter.
The company missesd Street’s estimates as brokerages had projected a 14-19 per cent jump in profit and 13-21 per cent increase in revenues on YoY basis. READ HERE
“Total Sales and Domestic Sales for the quarter increased by 13.8 per cent and 13.7 per cent respectively, on a base impacted by Covid- 19 induced lockdown with production disruptions across factories. Domestic Sales growth was driven by volume & mix. Export Sales increased by 17.7 per cent due to timing of exports to affiliates,” the company said.
Nestle follows January-December financial year.
Cost of materials consumed as a percentage to sales was marginally favourable due to realisations and mix offset by higher commodity prices. Further, the other Income decreased due to lower yields and lower average liquidities. Other expenditure, however, increased largely due to rising fuel prices and compares to a base quarter impacted by restricted operations due to Covid lockdown, the company said in its results statement.
The Board also approved disinvestment of Nestle’s entire minority stake of 19.98 per cent in Sahyadri Agro and Dairy, a company engaged in milk collection business in western India, due to change in the business scenario.
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