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Nestle India gains after good Q3 result

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Capital Market
Last Updated : Oct 29 2014 | 11:30 AM IST

Nestle India rose 0.77% to Rs 6,016 at 10:29 IST on BSE after net profit rose 9.2% to Rs 311.29 crore on 8.9% rise in net sales to Rs 2557.80 crore in Q3 September 2014 over Q3 September 2013.

The Q3 result was announced after trading hours yesterday, 28 October 2014.

Meanwhile, the BSE Sensex was up 142.85 points, or 0.52%, to 27,020.23

On BSE, so far 908 shares were traded in the counter, compared with an average volume of 3,086 shares in the past one quarter.

The stock hit a high of Rs 6,075 and a low of Rs 5,941 so far during the day. The stock hit a record high of Rs 6,624.55 on 11 November 2014. The stock hit a 52-week low of Rs 4,536 on 20 May 2014.

The stock had underperformed the market over the past one month till 28 October 2014, falling 2.98% compared with 0.96% rise in the Sensex. The scrip, however, outperformed the market in past one quarter, rising 15.34% as against Sensex's 3.42% rise.

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The large-cap company has an equity capital of Rs 96.42 crore. Face value per share is Rs 10.

Nestle India said that net domestic sales in Q3 September 2014 grew by 9.9% mainly from better realisations while export sales declined by 3.9% due to lower coffee exports.

Nestle India said that while cost of materials consumed has increased mainly due to significantly higher cost of milk and its derivatives in India which was even higher than those in international markets, finance costs have reduced mainly due to repayment of External Commercial Borrowing (ECB). The operating margins have been stable, Nestle India said

Commenting on Q3 earnings, Nestle India, managing director, Etienne Benet said, Despite severe input cost pressure, focus on various efficiency and cost containment programmes have enabled us to deliver healthy margins. We continue to rationalize the product portfolio to eliminate low margin SKUs which are not in line with our vision of Nutrition, Health and Wellness or growth strategy. Though the sales dynamics is better, we remain cautious as we are yet to feel the buoyancy from the external environment.

Nestle India is a subsidiary of Nestle S.A. of Switzerland. It manufactures milk products and other food products.

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First Published: Oct 29 2014 | 10:37 AM IST

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