Nestle India's net profit rose 33.5% to Rs 595.41 crore on 9.5% increase in net sales to Rs 3,199.31 crore in Q3 September 2019 over Q3 September 2018.
The result was announced after trading hours yesterday, 8 November 2019.
The earnings got a boost from higher domestic sales growth and lower tax outgo. During the quarter, domestic sales increased by 10.5% largely driven by volume & mix. Export sales, however, dropped by 7.1% due to lower coffee exports to Turkey.
The company's tax expense has been computed at the lower tax rates introduced in September 2019. The impact of this change, including that for the previous quarter, has been recognised in the current quarter. Accordingly, the tax expense for the current quarter is lower due to the credit of Rs 72.50 crore pertaining to the previous quarter.
"Led by the unrelenting efforts of our employees and business partners we have sustained the momentum of volume and mix led growth. Maggi, Kitkat, Nestle Munch, Nescafe RTD, Nangrow and Ceregrow delivered strong performances. The quarter witnessed higher commodity prices particularly in milk and its derivatives, which are likely to continue in the near term future," Nestle India's chairman and managing director, Suresh Narayanan.
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Nestle India board of directors appointed David McDaniel, as whole-time director, designated as 'executive director - finance & control and chief financial officer' with effect from 1 March 2020, for a term of five years, subject to requisite approvals, in place of Shobinder Duggal, whose term as whole-time director of the company ends on 31 December 2019. Further, the board of directors approved continuation of Shobinder Duggal as the chief financial officer of the company upto 29 February 2020.
Shares of Nestle India declined 1.66% to close at Rs 14,474.65 on Friday.
Nestle India operates food business which incorporates product groups, which include milk products and nutrition, beverages, prepared dishes and cooking aids, and chocolate and confectionery.
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