Nestle India shares fell as much as 5 per cent to hit an intraday low of Rs 16,360.
Shares of FMCG major Nestle India fell as much as 5 per cent to hit an intraday low of Rs 16,360 a day after it reported December quarter earnings. Nestle India’s profit in quarter ended December 2020 rose 2 per cent to Rs 483.3 crore from Rs 472.6 crore during the same quarter last year. The profit numbers declared by Nestle India were below expectations as analysts at brokerage firm Motilal Oswal expected the company to report net profit of Rs 550 crore. (Track Nestle India share price here)
Nestle India’s revenue from sale of products rose 9 per cent to Rs 3,417.52 crore compared with Rs 3,130.74 crore in the year ago period.
Nestle India’s domestic sales growth was driven by volume and mix its demand in Out of Home channel further improved during the quarter but was impacted due to Covid-19, Nestle India said in a statement. Its export sales declined 7.7 per cent due to lower coffee exports.
“The year gone by has truly demonstrated the unwavering commitment to stay the course on our purpose and values. Our employees, partners, suppliers, stakeholders indeed our entire eco system went beyond the call of duty and made extraordinary efforts in an exceptionally challenging year. I will always remain grateful for their efforts and sacrifices in these unusual times and our results are tribute to their determination,” Suresh Narayanan, Chairman and Managing Director, Nestle India said in a statement.
“Under these circumstances, I am pleased to share that we delivered strong domestic sales growth. Nearly two thirds of our key brands like MAGGI Noodles, Kitkat and Nescafe Classic posted double digit growth last year. This was backed by a step up in marketing spends, especially in the last quarter,” he added.
Nestle India’s board recommended a final dividend of Rs 65.00 per equity share amounting to Rs 62.67 crore for the year 2020. The total dividend for 2020 aggregates to Rs 200 per equity share.
As of 10:46 am, Nestle India shares traded 2.8 per cent lower at Rs 16,740, underperforming the Sensex was down 0.5 per cent.