Nestle India Q3 net up 5% to Rs 617 cr; net sales up 9.6% to Rs 3,865 cr

FMCG major Nestle India Ltd on Tuesday reported a 5.15 per cent rise in net profit to Rs 617.37 crore for the third quarter ended September, driven largely by a high single-digit volume growth in the domestic market.

The company, which follows the January-December financial year, had posted a profit of Rs 587.09 crore in the same period a year ago, Nestle India said in a BSE filing.

Net sales rose 9.63 per cent to Rs 3,864.97 crore as against Rs 3,525.41 crore earlier.

Nestle India Chairman and Managing Director Suresh Narayanan said, "This quarter has once again seen the Company deliver 'double-digit broad-based value growth' in domestic sales across categories."

Organised trade witnessed a resurgence in the third quarter with strong revenue growth in mid-twenties after a muted second quarter which was impacted by the second wave of COVID-19.

 

Nestle India's domestic sales were up 10.07 per cent to Rs 3,687.37 crore as against Rs 3,350.10 crore in July-September 2020.

"Domestic Sales Growth at 10.1 per cent. The growth is broad-based and largely driven by volume & mix," said Nestle India.

Export sales rose 1.30 per cent to Rs 177.60 crore as against Rs 175.31 crore.

The company said Maggi noodles and Polo have been recently introduced in the Middle East market, while Crunch Wafers have been launched in ASEAN markets.

In the July-September quarter, its total expenses increased 10.48 per cent to Rs 3,081.99 crore as compared to Rs 2,789.67 crore in the year-ago period.

"E-commerce channel showed strong acceleration on the back of convenience and pandemic driven consumer behaviour, fully leveraged by a team who used the power of meaningful shopper insights, data analytics, speed, flexibility, sharp communication and customisation for the channel at scale," Narayanan added.

Shares of Nestle India Ltd on Tuesday settled at Rs 19,389.15 on BSE, down 0.20 per cent from its previous close.