Daijiworld Media Network - Mumbai

Mumbai, Oct 16: FMCG giant Nestle India Ltd reported a 23.7% decline in standalone net profit for the September quarter, which stood at Rs 752 crore compared to Rs 986 crore a year earlier. The company, however, posted a 10% rise in revenue to Rs 5,644 crore, beating Bloomberg’s estimate of Rs 5,350 crore.

Margins contracted to 21.9% from 23.1% in the same period last year. Ebitda grew 6% to Rs 1,237 crore from Rs 1,168 crore a year ago.

Nestle said that three of its four product groups recorded strong volume growth, which contributed to the double-digit income increase. Domestic sales reached Rs 5,411 crore, the highest ever for any quarter. The confectionery, powdered and liquid beverages, prepared dishes, and cooking aids categories grew at a strong double-digit rate.

The company expects milk prices to soften after the festive season with the onset of the flush season, which may ease cost pressures in the coming months.