Q3CY23 Preview: Nestle India: Revenue seen at Rs. 51,954 million, PAT at Rs. 8,476 million

17 Oct 2023 , 05:01 PM

Result date: October 19, 2023

Recommendation: Add

Target price: Rs. 23,000

Analysts at IIFL Capital Services expect Nestle India to post one of the highest sales growth within the FMCG companies covered by them. Healthy growth in both volumes as well as pricing could drive 13.5% growth in revenue as compared to the year-ago quarter.

Though higher milk and coffee prices could have some bearing on margins of the beverage and confectionary portfolios, overall EBITDA growth is expected to remain strong for the company. Price hikes in coffee, milk and Infant nutrition segments will be a key positive.

Profit After Tax or PAT could grow 28.1% over the year-ago quarter.

Important management insights to watch out for:

• Update on expansion in rural markets
• Pricing action and outlook on input costs, margins

Rs. Million	September 2023 estimates	YoY change
Revenue	51,954	13.5%
EBITDA	12,547	25.0%
PAT	8,476	28.1%

Source: IIFL Research