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Nestle India gains after Q4 profit surges 38% to Rs 473 cr

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Capital Market
Last Updated : Feb 14 2020 | 11:04 AM IST

Standalone net profit soared 38.4% to Rs 473.02 crore in Q4 December 2019 (Q4 FY20) as against Rs 341.76 crore reported in Q4 December 2018 (Q4 FY19).

Net sales jumped 8.8% year-on-year (Y-o-Y) to Rs 3,130.74 crore in Q4 FY20. The Q4 figures were declared after trading hours yesterday, 13 February 2020.

Profit before tax surged 17.7% to Rs 614.62 crore Y-o-Y. Current tax expenses slumped 21.8% to Rs 144.41 crore during the period under review.

In Q4 FY19, total sales increased 8.8%. Domestic sales increased 10% through a combination of volume & mix. Export sales dropped 9. 7% due to lower exports of coffee to Turkey.

The company's net profit rose 22.6% to Rs 1,969.55 crore on 9.6% increase in net sales to Rs 12,295.27 crore in the year ended December 2019 over the year ended December 2018.

In the year ended December 2019, total sales and domestic sales increased by 9.6% and 10.9% respectively. Domestic sales growth is broad based largely driven by volume & mix. Export sales decreased by 9.9% due to lower exports of coffee to Turkey.

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The board recommended a final dividend of Rs 61 per equity share.

Commenting on the results, Suresh Narayanan, chairman and managing director, Nestle India said, "we have delivered broad based volume and mix led growth. This is a trend we have demonstrated consistently in recent years. Maggi Noodles, Kitkat, Nestle Munch, Ceregrow, Maggi Masala-ae-Magic, Nescafe RTD and Nangrow delivered strong performances during the year. The trend of higher commodity prices witnessed in recent quarters is likely to continue in the near future."

Nestle India operates in the Food segment. The firm food business incorporates product groups, which include milk products and nutrition, beverages, prepared dishes and cooking aids, and chocolate and confectionery.

Shares of Nestle India rose 0.56% to Rs 16,509 on BSE. The scrip hovered in the range of Rs 16,753.45 to Rs 16,415.15.

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First Published: Feb 14 2020 | 10:13 AM IST

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