Q3CY22 Preview: Nestle India: Revenue seen at Rs43,075 million, PAT at Rs6,140 million

18 Oct 2022 , 06:58 AM

Result date: 19^th October, 2022
Recommendation: Add
Target price: Rs19,000

Nestle India (Nestle) could witness healthy growth in revenue for the September 2022 quarter. Continued traction for key brands, namely, Maggi, Kitkat, Nescafe, etc. and improving demand for out-of-home consumption products could drive this performance.
Rising input cost pressures (particularly wheat and milk powder) though could keep the company’s profitability under check.

Nestle could report flattish EBITDA and a marginal decline in its Profit After Tax (PAT) for the quarter.

Important management insights to watch out for:

• Recovery in trade channels and rural demand
• New product pipeline
• Demand trends in packaged foods

Rs. Million	September 2022 estimates	YoY change
Sales	43,075	11.4%
EBITDA	9,482	0.0%
Profit After Tax	6,140	(0.5)%

Source: Company, IIFL Research