Q1FY22 Preview: Nestle India: Revenues seen at Rs39,523 million, PAT at Rs6,206 million

19 Apr 2022 , 09:23 AM

Result date: 21^st April, 2022
Recommendation: Add
Target price: Rs18,300

Nestle India is likely to report healthy growth in revenues for the quarter ending March 31, 2022. Large part of this growth is likely to come in from domestic market even as export revenues could witness a decline over the year-ago quarter. Recovery in out-of-home (OOH) consumption will be a key positive. Rural demand continues to be slow and is a key monitorable.

While gross margins could take a hit from rising input costs, price hikes and cost rationalization could provide some downside support to EBITDA margin.
PAT is likely to grow 3% over the year-ago quarter, reflecting the pressures from high input costs.
 
Important management insights to watch out for:
·         Outlook on consumption trends across markets and segments
·         Raw material prices scenario
·         Pricing action planned
·         New product launch pipeline
 

Rs Million	March 2022 estimates	YoY change
Sales	39,523	9.8%
EBITDA	9,563	2.8%
Profit After Tax	6,206	3.0%

Source: IIFL Research