The Hindu Business Line : Nestle India Q1 net up 22.4%

New Delhi April 30 Nestle India Ltd on Monday reported an increase of 22.4 per cent in its net profit for the first quarter ended March 31, 2007, to Rs 108.45 crore from Rs 88.6 crore in the corresponding quarter last year.

The company's net revenues for the first quarter grew by 27.7 per cent to Rs 863.1 crore from Rs 675.9 crore in the corresponding quarter previous year. However, the company saw a drop in operating profit margins from 20.93 per cent in the same quarter last year to 12.79 per cent in the current quarter.

Performance

Mr Martial Rolland, Chairman and Managing Director, Nestlé India, said, "The extensive work done in innovation and renovation, in particular, in the area of nutrition, health and wellness and the setting up of appropriate structures is now reflecting in our performance.

"While we are in a better position to accelerate our growth, the environment continues to be challenging especially on the price of commodities and white-collar costs. Various initiatives are undertaken to mitigate them."

The board of directors also declared an interim dividend of Rs 6.50 per equity share for 2007, amounting to Rs 62.7 crore (nominal value Rs 10 per equity share).

This was paid on March 29, along with the third interim dividend for 2006 of Rs1.50 per equity share. Nestle India reported its earnings per share (EPS) of Rs 11.25 against Rs 9.2 in the corresponding quarter previous year.

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