Nestle India reported a net profit of Rs 595.41 crore up 33.46 per cent in the quarter ended September 30, 2019 due to lower tax expenses and strong domestic sales. The company had posted a net profit of Rs 446.11 crore in the corresponding quarter previous fiscal.
The company said that the net profit includes a one-off credit of Rs 72.5 crore accrued due to computation of tax expense at a lower tax rate in accordance with the Taxation Laws (Amendment) Ordinance 2019. The impact of this change including that of the previous quarter, has been recognised in the current quarter, it said.
According to the company, the provisioning has also impacted the current quarter’s net profit by the same amount and the ‘Earnings Per Share’ by Rs 7.5.
The company, which follows the January-December period as the fiscal year, reported a 9.4 per cent rise in revenue from operations at Rs 3,215.81 crore in the third quarter this year.
Total sales grew by 9.5 per cent, while domestic sales grew by 10.5 per cent. However, export sales dropped by 7.1 per cent due to lower coffee exports to Turkey, it added.
Suresh Narayanan, Chairman and Managing Director, Nestlé India said the company sustained the momentum of volume and mix led growth. The company said that key brands such as Maggi, Kitkat, Nestle Munch and Nescafe RTD delivered strong performances in the third quarter.
“The quarter witnessed higher commodity prices particularly in milk and its derivatives, which are likely to continue in the near term future,” he added.