FMCG major Nestle India Ltd on Wednesday clocked an 8.25 per cent rise in its net profit to Rs 668.34 crore for the third quarter (Q3) ended September 30. According to a filing in the BSE, the company, which follows January-December financial year, had posted a net profit of Rs 617.37 crore a year ago.
Nestle India's net sales rose 18.24 per cent to Rs 4,591 crore during the period under review against Rs 3,882.57 crore in the corresponding period of the last fiscal year, the company said.
"Growth has been very strong in the large metros and mega cities and continued to be robust across smaller town classes, including rural markets," Nestle India Managing Director Suresh Narayanan said in a statement.
ALSO READ | Freshers' Hiring Intent By India Inc Surges 61 Per Cent In HY2: Report
Its total expenses in the July-September quarter increased 20.55 per cent to Rs 3,715.40 crore from Rs 3,081.99 crore in the year-ago period.
Nestle India’s domestic sales rose 18.27 per cent to Rs 4,361.15 crore compared to Rs 3,687.37 crore in the July-September quarter of 2021.
Its exports surged 15.68 per cent to Rs 205.45 crore against Rs 177.60 crore a year ago. However, analysts says that certain categories, including noodles and biscuits, defied the trend as people consider such items small treats during economic downturns, adding to Nestle's resilient urban sales momentum.
The easing of raw material prices, including oil, will likely help drive earnings further for Indian consumer goods makers, whose margins have been pressured by the Russia-Ukraine war-led increase in commodity prices.
"We are witnessing early signs of stability in prices of a few commodities such as edible oils and packaging materials," Nestle said in its statement.
Shares of Nestle India Ltd were trading at Rs 19,581.55 on the BSE in afternoon trade on Wednesday, up 1.01 per cent from its previous close.