Nestle India stock in a volatile session despite Q3 PAT rises 5.16% yoy

Nestle India Ltd reported 9.62% growth in total revenues for the Sep-21 quarter on consolidated basis at Rs3,882.57cr.

Oct 20, 2021 11:10 IST India Infoline News Service

Shares of Nestle India slipped in the late morning trade on Wednesday’s trade. The net profits were up 5.16% on a yoy basis at Rs617.37cr in Sep-21 quarter while on a sequential basis, the profits were up by 14.63%.

The stock is currently trading at Rs19,136.35 down by Rs241.15 or 1.24% from its previous closing of Rs19,377.50 on the BSE. The scrip opened at Rs19,499 and has touched a high and low of Rs20,200 and Rs19,092.20 respectively.

Nestle has also declared a second interim dividend of Rs.110 per share. Net margins at 15.90% were lower than 16.58% in Sep-20 but better than 15.49% NPM in Jun-21 quarter. Nestle has adopted calibrated price hikes.

Nestle India Ltd reported 9.62% growth in total revenues for the Sep-21 quarter on consolidated basis at Rs3,882.57cr. On a sequential basis, the revenues were higher by a 11.67% compared to Rs3,476.70cr in the Jun-21 quarter. Total sales growth of 9.6% comprised of 10.1% growth in domestic sales and 1.3% growth in export sales.

In the last few quarters, the e-commerce channel has been increased improving its share. The company saw growth across all food, beverage and confectionary categories as life returned to normal in most cities. The out-of-home or OOH channel is also on its way back to high growth. Meanwhile Maggi Noodles have been introduced in the Middle East market.

Operating profit growth was just about 7.57% on a yoy basis as the cost of inputs made a dent on the operating profits. The operating margins, as a result tapered from 22.38% in the Sep-20 quarter to 21.96% in the Sep-21 quarter. However, the company continues to be positive on price traction across wheat, coffee and edible oils due to pricing power.

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