Nestle India Q1 net profit up 15% to Rs 602 cr; total sales rise 8.9%

Food and beverages major Nestle India on Tuesday reported a 14.6 per cent year-on-year growth in its net profit at Rs 602 crore for the quarter ending March, 2021. It was Rs 525 crore in the year-ago period.

The company follows a January to December financial year. Total sales increased by 8.9 per cent during the quarter, while domestic sales rose by 10.2 per cent, mainly driven by volumes.

Its revenue from operations during the quarter came in at Rs 3,610.8 crore, up 8.6 per cent from Rs 3,325 crore in the same period last year.

“As the pandemic rages on, the quarter gone by has been another test of resilience of my team and our partners. I feel incredibly privileged to lead a team who faced with serious challenges, persevered regardless, to deliver double digit growth over a strong comparable in 2020. It is tribute to the commitment of the team to serve consumers as best as we could during the pandemic,” said Suresh Narayanan, Chairman and Managing Director of Nestle India.

The Board of Directors have declared an interim dividend for 2021 of Rs 25 per share amounting to a total of Rs 241 crore, which will be paid on and from May 19, 2021.

Export sales were lower by 12.9 per cent due to lower exports to affiliates.

Nestle said e‐commerce continued to deliver strong performance and grew by 66 per cent to maintain its robust contribution to the domestic sales.

On Tuesday, the company’s scrip rose 0.15 per cent on NSE to close at Rs 17,115 apiece.

Dear Reader,

Business Standard has always strived hard to provide up-to-date information and commentary on developments that are of interest to you and have wider political and economic implications for the country and the world. Your encouragement and constant feedback on how to improve our offering have only made our resolve and commitment to these ideals stronger. Even during these difficult times arising out of Covid-19, we continue to remain committed to keeping you informed and updated with credible news, authoritative views and incisive commentary on topical issues of relevance.

We, however, have a request.

As we battle the economic impact of the pandemic, we need your support even more, so that we can continue to offer you more quality content. Our subscription model has seen an encouraging response from many of you, who have subscribed to our online content. More subscription to our online content can only help us achieve the goals of offering you even better and more relevant content. We believe in free, fair and credible journalism. Your support through more subscriptions can help us practise the journalism to which we are committed.

Support quality journalism and subscribe to Business Standard.

Digital Editor