Nestle India Q1 results today: Net profit likely to rise 16%, revenue seen up 6.6% YoY with 4% volume growth
Also Read: Nestlé Controversies: From sugar in baby food to Maggi ban, we look at top 8 concerns in India and abroad 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
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