Q2CY22 Preview: Nestle India: Revenue seen at Rs38,259 million, PAT at Rs5,644 million

27 Jul 2022 , 09:32 AM

Result date: 28^th July, 2022
Recommendation: Add
Target price: Rs18,300
 
Nestle India will announce its results for the June 2022 quarter on July 28^th. The company is likely to witness continued strength in sales of key products. Share of out-of-home products is likely to improve in the quarter. Revenue is estimated to grow 10.5% over the year-ago quarter.

Rising costs of key agricultural commodities could pull down the company’s gross margin during the quarter. EBITDA margin is seen at 23.0% amid and could mirror the weakness seen at the gross margin level.

Nestle India could post a 4.8% growth in Profit After Tax or PAT over the year-ago quarter.

Important management insights to watch out for:
·         Trends in demand and market share movement across categories and markets
·         Outlook on input costs, pricing action and margins

Rs. Million	June 2022 estimates	YoY change
Revenue	38,259	10.5%
EBITDA	8,790	3.7%
Profit After Tax	5,644	4.8%

Source: IIFL Research