InvestorQ : How were the quarterly numbers of Nestle India for the September quarter?
rhea Babu made post

How were the quarterly numbers of Nestle India for the September quarter?

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Riya Dwivedi answered.
1 month ago
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Nestle India reported 18.3% higher sales for September 2022 quarter at Rs4,591 crore as well as a rather impressive growth of 13.74% growth in revenues on a sequential basis. If we break up the sales figure of Nestle for the quarter, then domestic sales increased by 18.2% while export sales were up by 15.7%, which is impressive considering the headwinds that exports are facing due to compression in global demand amidst recession fears. The growth in domestic sales was based on healthy balance of pricing and volumes. The board of Nestle India has declared second interim dividend of Rs120 per share subject to shareholder approval. Overall sales volume growth was 18.3% in Q2FY23. Ecommerce sales are now 7.2% of totals sales. Organized trade and out of home (OOH) channels saw smart growth.

Nestle India

Rs in Crore

Sep-22

Sep-21

YOY

Jun-22

QOQ

Total Income (Rs cr)

₹ 4,591.00

₹ 3,882.57

18.25%

₹ 4,036.57

13.74%

Operating Profit (Rs cr)

₹ 928.14

₹ 862.94

7.56%

₹ 729.92

27.16%

Net Profit (Rs cr)

₹ 668.34

₹ 617.37

8.26%

₹ 515.34

29.69%

Diluted EPS (Rs)

₹ 69.32

₹ 64.04

₹ 53.45

OPM

20.22%

22.23%

18.08%

Net Margins

14.56%

15.90%

12.77%

Let me now turn to the profit performance of Nestle India for Q2FY23 Profit after tax or PAT for September 2022 quarter grew just 8.26% at Rs668.34 crore in the quarter which is much slower than the sales growth on a yoy basis. This can be largely attributed to the frenetic rise in commodity prices on a yoy basis and steep spike in manpower costs which more than offset the surge sales over the same period. The operating margins were relatively healthy at 20.22% but lower on a yoy basis due to the impact of higher costs of inputs and other operating expenses. It must be noted that the correction in commodity prices is not fully reflected in the September quarter. Net margins were at 14.56% compared to 15.90% in the year ago period but sharply higher than 12.77% in the sequentially previous quarter.

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