A Reuters poll had estimated net profit for the June quarter at Rs 371.5 crore.
Noodles-to-chocolates maker Nestle India’s net profit rose 49.5 percent year-on-year (YoY) to Rs 395 crore in the second quarter of calendar 2018.
The company that follows January-December financial year reported a 12.3 percent YoY rise in net sales at Rs 2,698.4 crore helped by volume growth.
Total sales and domestic sales for the quarter increased 8.5 percent and 8 percent, respectively. The growth rates are adversely impacted due to lower reported sales by the change in structure of indirect taxes and reduction in realisations to pass on the GST (Goods and Services Tax) benefits.
On a comparable basis, domestic sales growth is estimated at 14.5 percent supported by increase in volumes on a base impacted by softer trading ahead of the rollout of GST, the company stated in a statement.
related news
A Reuters poll had estimated net profit for the June quarter at Rs 371.5 crore.
Earnings before interest, tax, depreciation, and amortisation (EBITDA) grew 39.7 percent to Rs 645 crore. The company had reported EBITDA of Rs 461.7 crore in the same quarter a year ago.
EBITDA margin stood at 23.9 percent. In the same quarter last year the margin was 19.2 percent.
Kitkat, Nestle, Maggi continued strong growth during the quarter under review.
Focussing on consumer led innovations, largely centred around nutrition, health and wellness, the company recently introduced Breakfast Cereals with NESPLUS and Canned Beverages with NESCAFE RTD (Ready-to-Drink).
Commenting on the results Suresh Narayanan, Chairman and Managing Director, Nestle India said, "The market momentum continued to be favourable and we have sustained our broad-based volume growth across categories. There is an improvement in margins due to favourable cost of commodities and cost efficiency programs. However, we are now witnessing headwinds in commodity prices."
He further said that the company will continue to enhance the nutrition profile of their products by adding ingredients like whole grains, vegetables and micronutrients.
"We have also taken a pledge and announced our roadmap for reduction of sodium, sugar and fat in relevant categories," Narayanan added.
The company declared a second interim dividend of Rs 20 per equity share of Rs 10/- each for the year 2018. The second interim dividend for 2018 will be paid on and from August 24, 2018.