Nestle India has announced an increase in net profit by 20.5 per cent to Rs 44.7 crore in the second quarter ended June 30 this year. The net profit for the corresponding period last year was Rs 37.1 crore.
The company's board of directors has declared an interim dividend of Rs 4 per equity share.
Meanwhile, gross revenue witnessed a rise of 11.9 per cent to Rs 471.9 crore in the second quarter ended June 30 this year.
Gross revenue for the same period last year was Rs 421.7 crore. Total exports for the quarter posted a rise of 9.5 per cent, mainly on accounts of exports to Russia.
Carlo Donati, chairman and managing director, Nestle India, said: "The excellent top-line growth and the contribution to bottom-line is the result of the increasing pace of innovation and renovation in the company. Though our entry into new businesses and continuing lacklustre markets may impact results in the near future, I am confident that Nestle India is moving in the right direction".
A company statement said, the lack of buoyancy in the economy has not affected Nestle India in a significant manner.
During the quarter, it maintained its thrust on improving availability of its products and of promoting packs and flavours in line with consumer needs.
The new products launched in the recent past have reported successful trials and acceptance.
In the ketchup category, the company claims that Maggi has increased market share. While in the soluble coffee category, the Nescafe brand remained strong and barring seasonal fluctuations, volumes stayed steady.
During the quarter, the company started its national roll-out of Nescafe Frappe that was launched in select metropolitan cities last year.
The chocolate and confectionery brands sustained their momentum and continued to strengthen their presence in the market.
During the quarter, the company launched a new product called Nestle Choco Stick. The product has initially been launched in the south and is available at Rs 2.
In the recent past, the company has entered new businesses like bottled water, dahi and new variants of Nestle UHT Milk which are low margin businesses.
