BackNestle India Q1 results today: Net profit likely to rise 16%, revenue seen up 6.6% YoY with 4% volume growth
Nestle India Q1 results today: Nestle India is expected to report revenue growth of 6.6% at ₹5,150 crore in the January - March 2024 quarter as compared with ₹4,830 crore in the same period last year, as per average estimates of 5 brokerages.
PremiumNestle India is expected to report decent earnings growth for the quarter ended March 2024 led by price hikes and margin expansion. Nestle India Q1 results are scheduled to be released today. The FMCG major follows a January-to-December calendar year.
In an exchange filing, Nestle India said that its Board of Directors will consider the audited financial results for the three months period from 1st January 2024 to 31st March 2024 (fifth quarter) and extended financial year ended 31st March 2024 [covering a period of 15 months (comprising five quarters) commencing from 1st January 2023 to 31st March 2024] on 25th April 2024.
The company’s board will also consider recommendation of final dividend for the financial year 2023-24, if any, for the approval of the members at the ensuing Annual General Meeting.
Nestle India is expected to report revenue growth of 6.6% at ₹5,150 crore in the January - March 2024 quarter as compared with ₹4,830 crore in the same period last year, as per average estimates of 5 brokerages. Volume growth for the quarter is expected to be 4% YoY.
The company’s net profit for the quarter is estimated to rise 16.5% to ₹858 crore from ₹736.6 crore, YoY.
Analysts at brokerage firm Motilal Oswal Financial Services expect a higher contribution from out-of-home consumption. They expect gross margin expansion of 300 bps YoY and EBITDA margin expansion of 110 bps.
Also Read: Sugar rush alert: Nestle's infant formula in hot water
At the operating level, earnings before interest, taxes, depreciation and amortisation (EBITDA) during the quarter is expected to grow nearly 9% to ₹1,208.6 crore from Rs 1,110 crore, while EBITDA margin may expand by 50 basis points (bps) to 23.5% from 23%, YoY.
“Nestle shall be less affected by a rural slowdown due to proactive steps and low salience in rural compared to others. EBITDA margins are anticipated to expand to 23.5% driven by lower milk costs. Cocoa and coffee costs remain a worry, but we estimate a gradual pass through to end consumers," Nuvama Institutional Equities said.
Also Read: Nestlé on infant cereal range in India: Reduced 30% added sugar in 5 years
Going ahead, commentaries on demand and material costs are likely to be watched out for.
Nestle India share price has remained in focus recently on reports of sugar content in its baby food sold in developing countries. Nestlé India was found to have included sugar and honey in infant milk and cereal products such as Cerelac, as per a Guardian report.
In response to these concerns, Nestlé India said it has reduced up to 30% of added sugars across its infant cereal range over the past five years. The amount of sugar reduction varies depending on the specific cereal.
Nestle India shares have fallen nearly 2% in one month, while the stock has gained over 1% in three months.
At 11:25 am, Nestle India shares were trading 0.80% higher at ₹2,523.00 apiece on the BSE.
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