Nestle India Q1 PAT down -1.25% to Rs594.71cr as input cost inflation hits operating margins

24 Apr 2022 , 12:18 PM

Nestle India Ltd reported 10.24% growth yoy in total revenues for the Mar-22 quarter on consolidated basis at Rs3980.70cr. On a sequential basis, the revenues were higher for the quarter by 6.46%.

For the full year FY21, the revenues were at Rs14,710cr. For the quarter, the domestic sales were up by 10.2% while the export sales were lower by 1% on a yoy basis resulting in total sales up by 9.7%.

The board has declared a final dividend of Rs.65 per share taking the total dividend per share for the year to Rs.90 per share.

The company did face some pressure on falling rural sales as the rural segment has been hit hard by sharply higher inflation levels and also falling income levels, resulting in weak rural demand.

The consolidated net profit for Q4 was lower by -1.25% to Rs594.71cr, while the profits were up by 53.81% on a sequential basis.

The raw materials as a percentage of sales was up and despite the price hikes during the year, it could only partially offset the impact of higher input costs in the quarter. Most of the key raw materials for Nestle were at 10-year highs. Due to supply chain constraints as an outcome of the Ukraine war, the commodity price pressure is likely to sustain for some more time.

Net margins stood at 14.94% in Mar-22 quarter compared to 16.68% in Mar-21. The net profit margins were higher by 460 basis points on a sequential basis, albeit due to the sequential exceptional loss of Rs236cr on past service costs in the Dec-21 quarter.

Financial highlights for Mar-22 compared yoy and sequentially

	Nestle India Ltd
Rs in Crore	Mar-22	Mar-21	YOY	Dec-21	QOQ
Total Income (Rs cr)	₹ 3,980.70	₹ 3,610.82	10.24%	₹ 3,739.32	6.46%
EBITDA (Rs cr)	₹ 831.45	₹ 840.20	-1.04%	₹ 783.80	6.08%
Net Profit (Rs cr)	₹ 594.71	₹ 602.25	-1.25%	₹ 386.66	53.81%
Diluted EPS (Rs)	₹ 61.68	₹ 62.46		₹ 40.10
EBITDA Margins	20.89%	23.27%		20.96%
Net Margins	14.94%	16.68%		10.34%