Nestle India Q2 net profit up to Rs 698.34 cr, net sales up to Rs 4,619.50 cr

NEW DELHI: FMCG major Nestle India Ltd on Thursday reported an increase of 36.86 per cent in its net profit at Rs 698.34 crore for the second quarter ended June 30, 2023.

The company, which follows the January-December financial year, had posted a net profit of Rs 510.24 crore in the same period a year ago, Nestle India said in a regulatory filing.

Nestle India's net sales rose 15.02 per cent to Rs 4,619.50 crore during the period under review, as against Rs 4,015.98 crore in the corresponding period last fiscal, the company said.

Total expenses in the April-June quarter were at Rs 3,743.15 crore, up 11.07 per cent, as against Rs 3,369.81 crore in the corresponding period a year ago.

Nestle India's domestic sales were up 14.6 per cent to Rs 4,420.77 crore, as against Rs 3,857.56 crore in the June quarter of 2022.

''Domestic sales growth is broad-based and grew by 14.6 per cent, on the back of prudent pricing and supported by mix and volume with targeted brand support,'' said Nestlé India Chairman and Managing Director Suresh Narayanan.

Its key brands continued to perform well, led by KITKAT, NESCAFÉ and MAGGI among others, it added.

Its exports were up 25.44 per cent to Rs 198.73 crore, as against Rs 158.42 crore in the corresponding quarter a year ago.

The total income of Nestle India in the June quarter was at Rs 4,682.48 crore, up 15.18 per cent.

Over the outlook, Narayanan said commodities such as edible oils, wheat and packaging materials have been in the lower price range.

''A reversal of price trend is noted in fuels with prices softening in the second quarter after reaching a higher level towards the end of quarter one. In fresh milk, there has been price stability. Robusta (coffee) prices are elevated and are expected to remain volatile,'' he said.

Shares of Nestle India Ltd were trading at Rs 22,322.60 apiece on BSE in late morning trade on Thursday, down 2.11 per cent from the previous close.