Nestle India reported a 6.2% YoY standalone net profit in Q3 FY25 at ₹696 crore. Earnings surprised street estimates, a survey conducted by Moneycontrol showed. Revenue in Q3 grew 3.9% YoY at ₹4,780 crore, supported by a 3.3% rise in domestic sales. The board approved a second interim dividend of ₹14.25 a share, taking the dividend payout in the current financial year till date to ₹17 a share.
Where sales and profit kept growing steadily, sustained cost overtones for key raw materials were stressed at Nestle India. Costs for coffee, cocoa, cereals, and grain kept growing, with edible oils seeming to stabilize in terms of price. Costs for packaging and milk, in contrast, kept at a level constant over the period.
Nestle India stocks saw strong buying demand, appreciating 6.5% at Rs 2,361 at NSE, post its Q3 earnings report.
The expansion of the company, in terms of Chairman and Director Suresh Narayan, was supported through a mix of volumes and pricing, with three out of its four categories delivering a strong performance. Nestle India’s distribution base, in contrast, strengthened, with its retail presence growing nearly 5% in a year, estimates Nielsen.
The company continues to invest in expanding its manufacturing capabilities. A third confectionery production unit at its Sanand factory is now operational, producing KitKat as part of Nestle India’s broader ₹5,800 crore capital expenditure plan for 2020-2025. Additionally, its e-commerce and out-of-home sales channels, including the expansion of Nestle Retail One Kiosks, contributed to overall sales growth. Nestle India’s exporting operations too performed well, with demand growing in overseas markets. In its domestic operations, the group performed well through premiumization trends, growing consumption, and new launches.
Macro-economically, the group saw a few factors at work, including inflation in food, sluggish urban consumption, and sluggish but steady rural rehabilitation. Long-term demand trends, however, it is bullish about. “The quarter experienced food inflation and moderation in urban demand, with rural consumption beginning to register improvement in a slow and sustained manner,” Narayanan added.
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Source: Moneycontrol
