Nestle India Ltd's Q4CY18 standalone net profit rises 9.6% yoy to Rs341.8cr : Misses Estimates

The company’s standalone revenue stood at Rs2,897.3cr, up 11.4% yoy but down 1.4% qoq.

Feb 14, 2019 10:02 IST India Infoline Research Team

Nestle India Ltd Q4CY18

Standalone Results Q4CY18: (Rs. in cr)

Q4CY18 YoY (%)
Revenue 2,897.3 11.4
EBITDA 557.5 [1.1]
EBITDA Margin (%) 19.2 [244]
Net Profit (reported) 341.8 9.6
***EBITDA margin change is bps
Nestle India's performance for Q4CY18 missed estimates on profitability fronts; revenue was broadly in-line. Revenue for the quarter grew 11.4% yoy to Rs2,897.3cr. Despite benign input costs, gross margin for the quarter remained flat; we believe it is because of the product mix. Further, on account of significant jump in other expense, EBITDA declined marginally by 1.1% yoy to Rs557.5cr, ~17% below consensus estimates; EBITDA margin contracted by 244bps yoy to 19.2% (estimate 23.5%). Aided by higher other income (up 47.2% yoy) PAT reported growth of 9.6% yoy to Rs341.8cr, ~19% below estimates.
  • Domestic sales for the quarter grew by 12% yoy supported by broad based volume growth. Exports remained flat yoy due to lower exports to Bangladesh & United Arab Emirates.
  • Other expenses increased 285bps yoy as percent of net sales due to step up in demand generating activities including expense on new products.
  • Other income was up 47.2% yoy to Rs75.2cr; this was aided by higher average liquidities as well as higher yields.

Technical View:

Nestle India Ltd is currently trading at Rs. 10,225.85, down by 356.25 points or 3.37% from its previous closing of Rs. 10,582.10 on the BSE.
The scrip opened at Rs. 10,590 and has touched a high and low of Rs. 10,590 and Rs. 10,212 respectively. So far 26,032 (NSE+BSE) shares were traded on the counter. The stock is currently trading above its 50 DMA.

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