Nestle India's Q1 standalone net profit rises 19% yoy to Rs.259 crore : Beats Estimates

The company’s standalone revenue stood at Rs. 2,302.46 crore, down 8.5% yoy but up 17.5% qoq.

May 12, 2016 4:16 IST | India Infoline News Service
Nestle India, One of the largest food company in the world, reported standalone net profit of Rs.259 crore for the quarter ended March 31, 2014, registering decline of 19.13% yoy, but growth of 41.38% qoq. The company’s standalone revenue stood at Rs. 2,302.46 crore, down 8.5% yoy but up 17.5% qoq.

Its standalone core operating profit of Rs. 455.33 crore for the quarter, declined by 25.44% yoy but clocked growth of 52.81% qoq. Operating profit margin for the current quarter at 19.78% contracted by 449 bps yoy but expanded by 457 bps qoq.

Nestle reported decline in Revenue/EBITDA/RPAT by 8.5%/12.3%/19.1% to Rs. 2,302cr/Rs536cr/Rs. 259cr, respectively. Exports declined 4.8% YoY, driven by Maggi issue. However, sequentially, the result has improved where Revenue/EBITDA/RPAT grew by 17.5%/38.1%/41.4%, indicating an uptick in Maggi sales (over 50% market share regained within five months of re-launch).

NEST re‐launched Maggi Noodles on Nov’ 2015. Till date, only Masala variant was available, it has now launched the Chicken variant on Feb’ 2016 and Atta & Oats variant on April’ 2016. We expect sequential traction for Maggi to pick‐up despite increasing competitive intensity as it rebuilds the equity.

Result Highlights: (Rs. in crore)

Reported Results IIFL Estimates Variance (%)
Standalone Revenue 2302.46 2214.74 3.96
Standalone Net Profit 259.00 222.15 16.59

Bloomberg estimated the company’s standalone net profit at Rs. 260.96 crore.

Corporate Action: Nestle India at its meeting held on May 12, 2016, inter alia, has declared interim dividend of Rs. 12/- per equity share for the year 2016 on the entire issued, subscribed and paid up share capital of the Company of 96,415,716 equity shares of the nominal value of Rs. 10/- each. Interim Dividend for 2016 will be paid on and from May 31, 2016.

Stock Commentary:

Nestle India Ltd ended at Rs. 5700, up by 102.65 points or 1.83% from its previous closing of Rs. 5597.35 on the BSE.

The scrip opened at Rs. 5660 and touched a high and low of Rs. 5725 and Rs. 5601.25 respectively. A total of 30891(NSE+BSE) shares were traded on the counter. The current market cap of the company is Rs. 53969.65 crore.

The BSE group 'A' stock of face value Rs. 10 touched a 52 week high of Rs. 7327 on 18-May-2015 and a 52 week low of Rs. 4990 on 29-Feb-2016. Last one week high and low of the scrip stood at Rs. 5692.75 and Rs. 5490 respectively.

The promoters holding in the company stood at 62.76 % while Institutions and Non-Institutions held 20.1 % and 17.14 % respectively.

The stock traded below its 200 DMA.

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