Nestle India reported strong numbers for the quarter, broadly in-line with the estimates. Revenue (net of excise duty for the base year) for the quarter grew by 10.6% yoy to Rs2,757.2cr. Gross margin for the company expanded by 300bps yoy to 59.1%. Led by healthy revenue growth and lower input costs, EBITDA jumped by 34.7% yoy to Rs696.9cr. EBITDA margin for the quarter expanded by 451bps to 25.3%. PAT for the quarter jumped by 38.2% yoy to Rs424cr, in-line with the estimates.
Company’s domestic sales grew by 6.3% yoy, primarily led by volume growth supported by increase in penetration. Company estimates comparable growth at 13.4% yoy. Realisation was adversely impacted due to price benefits passed on to consumers post GST revision.
Gross margin expansion of 300bps yoy was mainly aided by lower commodity prices, especially in milk and milk solids.
In-line with company’s vision to introduce products rooted in nutrition, health and wellness, yesterday company announced launch of Breakfast Cereals in this year.
Interest cost for the company increased to Rs31.1cr against Rs22.8cr in same quarter last year.
Other income was up by 35.7% yoy to Rs56.4cr.
Tax rate for the quarter stood at 33.7% against 31.8% in Q1CY17.
Company has declared interim dividend of Rs20 per equity share.
Nestle India Ltd ended at Rs. 8,986.45, down by 105.55 points or 1.16% from its previous closing of Rs. 9,092 on the BSE.
The scrip opened at Rs. 9,150 and touched a high and low of Rs. 9,207.55 and Rs. 8,934.80 respectively. A total of 48,306 (NSE+BSE) shares were traded on the counter. The stock traded below its 50 DMA.
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