Nestle India Q2 net up 11% to Rs 539 crore, revenue jumps 14%

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FMCG major Nestle India on Wednesday reported a 10.6% year-on-year (YoY) rise in its second-quarter profit at Rs 538.58 crore. The company had reported a profit after tax of Rs 486.60 crore in the same quarter last year.

While revenue from operations for Q2CY21 (quarter two of the calendar year 2021) came in at Rs 3,476.7 crore as against Rs 3,050.48 crore posted in the corresponding quarter last year, implying an upside of 14%. However, on sequential basis revenues were down by 3.7% from Rs 3,610.8 crore in the preceding quarter. Profit after tax on QoQ (quarter-on-quarter) basis fell 10.57% from Rs 602.25 crore in January to March quarter.

“Total Sales and Domestic Sales for the quarter increased by 13.8% and 13.7%, respectively, on a base impacted by Covid- 19 induced lockdown with production disruptions across factories. Domestic Sales growth was driven by volume & mix. Export Sales increased by 17.7% due to timing of exports to affiliates,” the company said.

On the operational front, the company reported EBIDTA (earnings before interest depreciation tax and amortization) of Rs 877.47 crore compared to Rs 785.49 crore registering a growth of 11.47%. However, its EBIDTA Margins contracted by 41 basis points to 25.03% in Q2CY21 versus 25.43% in Q2CY20.

Nestle India follows January-December as the financial year.

The Board also approved the disinvestment of Nestle’s entire minority stake of 19.98% in Sahyadri Agro and Dairy, a company engaged in milk collection business in western India, due to change in the business scenario.

Shares of Nestle India closed today session at Rs 18,000 apiece lower by Rs 226 or 1.24%.