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Nestle India posted a 50 per cent jump in net profit to ₹395.03 crore in the second quarter ended June 30, aided by lower raw material costs and cost-efficiency measures. Net profit in the corresponding quarter in the previous fiscal stood at ₹263.43 crore. The company follows the January-December period as the financial year.
Revenue from operations grew 8.6 per cent to ₹2,698.40 crore (₹2,484.73 crore).
Total sales grew 8.5 per cent and domestic sales grew 8 per cent in the quarter under review. “The growth rates were adversely impacted due to lower reported sales by the change in structure of indirect taxes and reduction in realisations to pass on the GST benefits,” the company said in a statement.
“The Board of Directors have declared second interim dividend for 2018 of ₹20 per equity share (of face value ₹10), amounting to ₹192.8 crore, which will be paid from August 24,,” the company said in a statement.
The company’s CMD Suresh Narayanan said: “The market momentum continued to be favourable and we have sustained our broad based volume growth across categories. There is an improvement in margins due to favourable cost of commodities and cost-efficiency programmes. However, we are now witnessing headwinds in commodity prices.”
The company said brands such as Kitkat, Nescafe and Maggi continued to see strong growth. “We are continuing to enhance the nutrition profile of our products by adding ingredients like whole grains, vegetables and micronutrients,” Narayanan added.
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