Q4CY22 Preview: Nestle India: Revenue seen at Rs 43,239 million, PAT at Rs 5,867 million

10 Feb 2023 , 12:40 PM

Result date: 16^th February, 2023

Recommendation: Add

Target price: Rs 22,000

Nestle India (Nestle) could post 17% growth in revenue over the year-ago quarter, believe analysts at IIFL Capital Services. Price hikes and expansion of distribution network in rural areas are key drivers of Nestle’s revenue in the quarter. Revenue share of out-of-home consumption products could be higher.

Growth in EBITDA, though, could lag that in revenue at 5%. This is due to continued higher prices of agri commodities which are key raw materials for the company. Increased freight costs could further pressurize Nestle’s profitability in the quarter.

The company’s Profit After Tax (PAT) could grow 3.5% over the year-ago quarter.

Important management insights to watch out for:

• Demand trends across categories and markets
• Outlook on material costs, pricing action and margins

Rs Million	December 2022 estimates	YoY change
Revenue	43,239	16.7%
EBITDA	9,111	5.2%
Profit After Tax	5,867	3.5%

Source: IIFL Research