Nestle India Q3 Profit Rises 5% At Rs 617 Crore

FMCG major Nestlé India Limited, a subsidiary of Nestlé reported a 5.15 percent rise in net profit to Rs 617.37 crore for the third-quarter ending in September, driven largely by 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 percent to Rs 3,864.97 crore as against Rs 3,525.41 crore earlier. 

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

Organized trade witnessed a resurgence in the third quarter with strong revenue growth in the 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 percent to Rs 3,687.37 crore as against Rs 3,350.10 core in July-September 2020.

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

Export sales rose 1.30 percent 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. Shares of Nestle India on Tuesday settled at Rs 19,389.15 on BSE, down 0.20 percent from its previous close. In the July-September quarter, its total expenses increased 10.48 percent 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 behavior, fully leveraged by a team who used the power of meaningful shopper insights, data analytics, speed, flexibility, sharp communication and customization for the channel at scale," Narayanan further added.