FMCG major Nestle India today posted a 9.22 per cent increase in consolidated net profit of Rs 311.29 crore for the third quarter ended September 30, 2014, as subdued demand continued to impact the sector.

The company had reported a net profit of Rs 285 crore during the same period last year, Nestle said in a BSE filing.

Nestle follows January-December financial year.

Net sales of the company rose to Rs 2,557.8 crore for the third quarter, up 8.92 per cent compared to Rs 2,348.31 crore in the corresponding period of previous year.

Commenting on the results, Nestle India Managing Director Etienne Benet said: “Despite input cost pressure, focus on various efficiency and cost containment programs have enabled us to deliver healthy margins. We continue to rationalise the product portfolio to eliminate low margins stock keeping units (SKUs) which are not in line with our vision of nutrition, health and wellness or growth strategy.”

Nestle said that though sales dynamics are better, the company remains cautious as “it is yet to feel the buoyancy from the external environment”.

Overall expenses during the quarter under review stood at Rs 2,107.48 crore, up 8.84 per cent compared with Rs 1,936.25 crore in the third of previous calendar year.

Nestle said cost of material consumed has increased mainly due to higher cost of milk and its derivatives in India, which is even higher than those in international markets.

For the nine month period ended September 30, the company posted a net profit of Rs 858.31 crore as against net profit of Rs 835.47 crore in the corresponding period last year.

Net sales of the company for the nine month period ended September 30, rose to Rs 7,290.17 crore as compared to Rs 6,809.60 crore in same period in the previous fiscal.

The board of the company has declared a second interim dividend of Rs 30 per share for 2014, the company said.

Shares of Nestle India closed at Rs 5,969.80 apiece, down 2.20 per cent on BSE.

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