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For
the quarter ending March 2024, standalone Net sales (including other operating income) of Nestle India has increased 9.05% to Rs 5,267.59 crore compared to quarter ended March 2023. Operating profit margin has jumped from 22.68% to 25.61%, leading to 23.13% rise in operating profit to Rs 1,348.82 crore. Raw material cost as a % of total sales (net of stock adjustments) decreased from 44.71% to 41.00%. Purchase of finished goods cost rose from 2.05% to 2.27%. Employee cost decreased from 9.31% to 9.23%. Other expenses rose from 21.49% to 21.92%. Provisions writeoffs cost fell from 0.30% to 0.19%. Other provisions fell from 0.30% to 0.19%. Other income fell 20.60% to Rs 26.75 crore. PBIDT rose 21.82% to Rs 1375.57 crore. Provision for interest fell 29.21% to Rs 26.2 crore. Loan funds remained nil. PBDT rose 23.55% to Rs 1349.37 crore. Provision for depreciation rose 7.05% to Rs 108.87 crore. Profit before tax grew 25.24% to Rs 1,240.50 crore. Provision for tax was expense of Rs 316.41 crore, compared to Rs 253.82 crore. Effective tax rate was 25.30% compared to 25.63%. Profit after tax rose 26.81% to Rs 934.17 crore. Promoters’ stake was 62.76% as of 31 March 2024 ,compared to 62.76% as of 31 March 2023 .
Full year results analysis
Net sales (including other operating income) of Nestle India has increased 13.19% to Rs 19,126.30 crore. Operating profit margin has jumped from 21.97% to 23.38%, leading to 20.43% rise in operating profit to Rs 4,470.99 crore. Raw material cost as a % of total sales (net of stock adjustments) decreased from 44.63% to 42.03%. Purchase of finished goods cost rose from 2.03% to 2.18%. Employee cost increased from 9.54% to 9.65%. Other expenses rose from 22.16% to 22.82%. Provisions writeoffs cost fell from 0.27% to 0.21%. Other provisions fell from 0.27% to 0.21%. Other income up 20.01% to Rs 121.21 crore. PBIDT rose 20.42% to Rs 4592.2 crore. Provision for interest fell 22.82% to Rs 119.29 crore. Loan funds stood at Rs 270.52 crore as of 31 December 2023 to Rs 270.52 crore as of 31 December 2022. Inventories stood at Rs 1,928.77 crore as of 31 December 2023 to Rs 1,928.77 crore as of 31 December 2022. Sundry debtors stood at Rs 191.89 crore as of 31 December 2023 to Rs 191.89 crore as of 31 December 2022 Cash and bank balance stood at Rs 945.55 crore as of 31 December 2023 to Rs 945.55 crore as of 31 December 2022. Investments stood at Rs 777.54 crore as of 31 December 2023 to Rs 777.54 crore as of 31 December 2022. PBDT rose 22.24% to Rs 4472.91 crore. Provision for depreciation rose 6.43% to Rs 428.91 crore. Fixed assets stood at Rs 3,402.06 crore as of 31 December 2023 to Rs 3,402.06 crore as of 31 December 2022. Profit before tax grew 24.20% to Rs 4,044.00 crore. Provision for tax was expense of Rs 1039.62 crore, compared to Rs 865.45 crore. Effective tax rate was 25.74% compared to 26.58%. Profit after tax rose 25.44% to Rs 2,998.67 crore. Promoters’ stake was 62.76% as of 31 December 2023 ,compared to 62.76% as of 31 December 2022 . Cash flow from operating activities increased to Rs 3,392.19 crore for year ended December 2023 from Rs 2,737.43 crore for year ended December 2022. Cash flow used in acquiring fixed assets during the year ended December 2023 stood at Rs 1,371.35 crore, compared to Rs 549.92 crore during the year ended December 2022. Other Highlights
Board
Recommended Final Dividend of Rs 8.50 per equity shares of Re 1 each for the
fifteen months financial year ended 31st March 2024. Board has fixed record
date as 15 July 2024 for determining the entitlement of Final Dividend.
The
company launched NESPRESSO coffees and machines for consumers, coffee
aficionados and coffee connoisseurs in India, to unlock new experiences and
discover extraordinary coffees. The first NESPRESSO boutique is intended to be
opened in Delhi, before expanding to other key cities. NESPRESSO will also be
sold online through e-commerce platforms.
The
company entered into a definitive agreement to form a joint venture with Dr.
Reddy’s Laboratories to take health science nutraceutical portfolio to
consumers. The joint venture company would be formed with Dr Reddy’s holding
51% and Nestlé India’s holding 49%. Nestlé India will have a call option to
increase shareholding upto 60% after six years at a Fair Market Value. Dr
Reddy’s shall continue to hold at least 40% of the shareholding after the
Company exercises its call option.
Commodity Outlook: Commodity prices are seeing unprecedented headwinds in Coffee and
Cocoa with all time high prices and an ongoing price rally. Cereals and grains
are going through a structural cost increase backed by MSP. Milk prices
expected to rise on account of expected harsh summer.
Management Comments :
Mr.
Suresh Narayanan, Chairman and Managing Director, Nestlé India said, “I am
pleased to share that we have delivered double-digit growth, despite challenges
posed by rising food inflation and volatile commodity prices. We have witnessed
a strong growth momentum across our product portfolio led by a combination of
pricing and mix. Our domestic sales crossed INR 5,000 crore this quarter, a
notable milestone for us. I would like to extend my heartfelt gratitude to my
colleagues, distributors, retailers and partners for their unwavering
dedication, determination, and diligence. In the financial year ended 31st
March 2024, Confectionery delivered strong performance, fuelled by KITKAT,
making India the second-largest market for the brand globally. Our Beverages
business recorded robust performance. NESCAFÉ has introduced its coffee to over
30 million households in India in the last 7 years. Milk Products and Nutrition
witnessed strong growth despite inflationary pressures. Prepared Dishes and
Cooking Aids registered strong growth across portfolio led by MAGGI Noodles and
MAGGI Masala-ae-Magic. India emerged as the largest market worldwide for MAGGI.
The Out-of-Home business reported strong growth and e-commerce sustained its
upward trajectory, contributing to 6.8 % of sales. We remained steadfast on our
RUrban journey and expanded to encompass over 200,000 villages, marking a
significant milestone in our journey. The pursuit of new platforms and
categories is a key component of Nestlé India`s overall growth strategy and
reflects our commitment to anticipating and responding to evolving market
trends and consumer preferences. By leveraging our existing competencies and
capabilities, and by investing in new areas of opportunity, Nestlé India
strives to deliver long-term value to its stakeholders.”
| Nestle India : Standalone Results | | Quarter ended | Year ended |
|---|
| Particulars | 202403 | 202303 | Var.(%) | 202312 | 202212 | Var.(%) |
|---|
| Net Sales (including other operating income) | 5,267.59 | 4,830.53 | 9.05 | 19,126.30 | 16,896.96 | 13.19 | | OPM (%) | 25.61 | 22.68 | 293 bps | 23.38 | 21.97 | 140 bps | | OP | 1,348.82 | 1,095.48 | 23.13 | 4,470.99 | 3,712.55 | 20.43 | | Other Inc. | 26.75 | 33.69 | -20.60 | 121.21 | 101.00 | 20.01 | | PBIDT | 1,375.57 | 1,129.17 | 21.82 | 4,592.20 | 3,813.55 | 20.42 | | Interest | 26.2 | 37.01 | -29.21 | 119.29 | 154.57 | -22.82 | | PBDT | 1,349.37 | 1,092.16 | 23.55 | 4,472.91 | 3,658.98 | 22.24 | | Depreciation | 108.87 | 101.7 | 7.05 | 428.91 | 403.01 | 6.43 | | PBT | 1,240.50 | 990.46 | 25.24 | 4044 | 3255.97 | 24.20 | | PBT before EO | 1240.5 | 990.46 | 25.24 | 4044 | 3255.97 | 24.20 | | EO Income | 10.08 | 0 | - | -5.71 | 0 | - | | PBT after EO | 1250.58 | 990.46 | 26.26 | 4038.29 | 3255.97 | 24.03 | | Taxation | 316.41 | 253.82 | 24.66 | 1039.62 | 865.45 | 20.12 | | PAT | 934.17 | 736.64 | 26.81 | 2998.67 | 2390.52 | 25.44 | | P/(L) from discontinued operations net of tax | 0 | 0 | - | 0 | 0 | - | | Net profit after discontinued operations | 934.17 | 736.64 | 26.81 | 2998.67 | 2390.52 | 25.44 | | EPS (Rs)* | 9.61 | 7.64 | 25.79 | 31.15 | 24.79 | 25.62 | | | * EPS is on current equity of Rs 96.42 crore, Face value of Rs 1, Excluding extraordinary items. | | # EPS is not annualised | | bps : Basis points | | EO : Extraordinary items | | Figures in Rs crore | | Source: Capitaline Corporate Database |
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