Nestle India's net profit plunges 4% yoy at Rs515 crore in Q2CY22; stock adds ~1%

29 Jul 2022 , 03:22 PM

Nestle India Limited reported a 4.32% decline in net profit during Q2CY22 at Rs515.34 crore as compared to Rs538.58 crore in the previous corresponding quarter.

The profit missed the target of Rs517 crore set by the analysts.

Company reported a 15.68% jump in revenue for Q2CY22 at Rs4,055.94 crore as against Rs3,506.17 crore in the same quarter last year.

The company further stated that it witnessed early signs of softening in a few of the commodities like edible oils and packaging materials. With the continual increase in demand and volatility, fresh milk, fuels, grains, and green coffee prices are expected to remain stable.

Despite a higher base from Covid-related tailwinds in the prior quarter, the company said its e-commerce channel was able to maintain good growth and contributed 6.4% to quarterly sales.

Company’s out-of-home channel performed well, thanks to improved channel opening and business-led initiatives.

The organized trade channel experienced strong growth, despite a low base due to the second Covid wave.

At around 3.25 PM, Nestle India was trading at Rs19,405 per piece, up by Rs300.55 or 1.57% from its previous closing of Rs19,104.45 on the BSE. The scrip touched intraday high and low of Rs19,411 and Rs19,003.85 respectively.

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