Nestle India Ltd's Q1CY18 standalone net profit rises 38.2% yoy to Rs424cr : In-line with Estimates

India Infoline Research Team | May 10, 2018 16:56 IST

The company’s standalone revenue stood at Rs2,757.2cr, up 10.6% yoy and 6.0% qoq.

Nestle India Ltd Q1CY18

Standalone Results Q1CY18: (Rs. in cr)

Q1CY18 YoY (%)
Revenue 2,757.20 10.6
EBITDA 696.90 34.7
EBITDA Margin (%) 25.3 451
Net Profit (adjusted) 424 38.2
***EBITDA margin change is bps
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Reco. Price

9087.6

Last updated on

09-May-2018

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.


Technical View:

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.


***Note: This is a NSE Chart

 

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