Mutual Funds Commodities Research Tax Planning IPO Our Team Contact Us    
Google
Web www.equitybulls.com
Research

| More

Nestlé India - Q2CY20 First Cut - ICICI Securities

Posted On: 2020-07-28 23:02:37


(CMP - Rs. 17099, MCap - Rs. 1,61,041 crore)

Nestlé India Q2CY20 numbers were tad below our estimates on revenues, margins & earnings front.

Q2CY20 Earnings Summary

- Revenue witnessed growth of 2.0% to Rs. 3050.5 (I-direct estimate : Rs. 3188.8) with domestic sales grew by 2.6% & exports sales witnessed a decline of 9.3%. The growth was impacted by manufacturing disruptions in most of the product category in April. We believe Milk & related products category started manufacturing earlier in April and all other categories were lost significant sales in April. On an average eight manufacturing facilities were working on 75% during the quarter

- The company witnessed strong growth in 'EVERYDAY dairy whitener', Nestle a+ Milk, Milkmaid, Nescafe Classic & Nestle Sunrise brands in milk & beverage categories. Further, the growth in noodles segment were very strong in May & June as the manufacturing facilities started ramping up production. However, the company lost sales in April due to limited supplies with the halt on manufacturing & disruption in distribution network

- Operating profit witnessed a growth of 7.2% and operating margins expanded by 127 bps. The expansion in margins were led by 141 bps improvement in gross margins with milk prices in deflationary trend. Further, the cost cutting measures & reduction in A&P led to the saving in overhead spends by 487 bps. Given reduction in corporate tax rate, net profit increased by 11.1% to Rs. 486.6 crore (I-direct estimate : Rs. 502.7 crore)

Though the food category has seen strong growth during the quarter led by the trend of increasing 'in-home' consumption, we believe the company was not able to supply noodles & coffee due to late start of manufacturing for these categories. However, manufacturing operations remains smooth for milk & related products (being part of essentials) during the entire quarter which would have resulted in strong growth in the category. Moreover, noodles witnessed a strong growth by end of May & June months with supply coming back to near normal. We believe the Nestlé's product portfolio would see strong growth in medium term with continued higher 'in-home' consumption (noodles, ketchup, coffee) & manufacturing & supply normalising completely.

We will be coming out with the detailed update soon.

Shares of NESTLE INDIA LTD. was last trading in BSE at Rs.17098.95 as compared to the previous close of Rs. 17343.9. The total number of shares traded during the day was 5573 in over 2274 trades.

The stock hit an intraday high of Rs. 17447.35 and intraday low of 17025. The net turnover during the day was Rs. 95975102.


Source: Equity Bulls

Click here to send ur comments or to feedback@equitybulls.com


Disclaimer:The article above is a gist / extract of the original report prepared by the research firm / brokerage firm. This article is not to be considered as an offer to sell or a solicitation to buy any securities. This article is meant for general information only. www.equitybulls.com, its employees or owners or the research firms, its employees or owners won't be responsible for any liability that may arise from information, errors or omissions in these articles. www.equitybulls.com or its employees or owners / the research firms or its employees or clients or owners may from time to time hold positions in securities referred in this article. For detailed research reports, please contact the concerned research firm directly.





Other Headlines:

Pidilite Industries - Q1FY21 Result Update - ICICI Securities

Dwarikesh Sugar - Q1FY21 Result Update - ICICI Securities

Divi's Laboratories - Q1FY21 First Cut - ICICI Securities

Amber Enterprises India - Q1FY21 First Cut - ICICI Securities

Mahanagar Gas - Q1FY21 First Cut - ICICI Securities

Container Corporation of India - Q1FY21 First Cut - ICICI Securities

Bata India - Q1FY21 First Cut - ICICI Securities

RBI Monetary policy - August 6, 2020 - Xanadu Realty

MPC pauses; allows one-time restructuring - Economy - ICICI Securities

RBI Monetary Policy - V Swaminathan, Joint President - Government Business & Gold Loans, Kotak Mahindra Bank

Mr. CVR Rajendaran, CEO & MD, CSB Bank on the monetary policy announcement

Mr. Satish Magar's statement on RBI announcement on Monetary Policy

Mr. R.K.Gurumurthy, Head - Treasury, Lakshmi Vilas Bank on the RBI Monetary policy

Mr. Rajnish Kumar, Chairman, SBI and Chairman, IBA on RBI Monetary Policy

Mr. Umesh Revankar, MD and CEO, Shriram Transport Finance on the RBI monetary policy

Views on RBI Policy: Ms. Bekxy Kuriakose, Head - Fixed Income, Principal Asset Management

RBI Monetary Policy - Aug 2020 - Sujata Guhathakurta, President, Debt Capital Markets-Sales, Kotak Mahindra Bank

View on RBI Monetary Policy - Aug 2020 - Shanti Ekambaram, Group President - Consumer Banking, Kotak Mahindra Bank

Views on RBI Policy - Aug 2020 - Mr. Dhiraj Rellu, MD & CEO, HDFC Securities

Monetary Policy

View on RBI Monetary Policy - Suvodeep Rakshit, Vice President & Senior Economist at Kotak Institutional Equities

Views on RBI's monetary policy - Jyoti Roy, DVP - Equity Strategist, Angel Broking Ltd

Monetary Policy - Aug 2020: Views of Mr. Amar Ambani, YES SECURITIES

Suman Chowdhury, Chief Analytical Officer, Acuité Ratings & Research, on the RBI policy announcement - Aug 2020

Banks and NBFCs - RBI comes to the rescue again - HDFC Securities

Realty sector on RBI's decision to permit a one-time restructuring of loans

1QFY21 Results of Alkem Lab - Angel Broking

UPL - Quant Pick - August 2020 - ICICI Securities

Mahindra & Mahindra - Q1FY21 First Cut - ICICI Securities

Motilal Oswal Financial - Company Update - August 2020 - ICICI Securities

Indian Hotels - Q1FY21 Result Update - ICICI Securities

Gujarat Pipavav Port - Company Update - August 2020 - ICICI Securities

Kajaria Ceramics - Q1FY21 First Cut - ICICI Securities

1QFY21 results of HPCL - Angel Broking

Maintain REDUCE on PSP Projects - In-line performance - HDFC Securities

Tata Consumer Products - Q1FY21 Result Update - YES Securities

TV Today - Q1FY21 First Cut - ICICI Securities

Balrampur Chini - Q1FY21 First Cut - ICICI Securities

1QFY21 results of Mahindra & Mahindra - Angel Broking

DLF - Stable performance - HDFC Securities

Mindspace Business Park REIT Listing - Angel Broking

Maintain ADD on Hindustan Petroleum Corporation - High marketing margins lead the way - HDFC Securities

1QFY21 results of Gujarat State Petronet Ltd - Angel Broking

1QFY21 results of Torrent Power Ltd - Angel Broking

1QFY21 results of Lupin Ltd - Angel Broking

1QFY21 results of Vodafone Idea - Angel Broking

1QFY21 results of KEI Industries Ltd - Angel Broking

Honeywell Automation India (Q1FY21) - BUY (Target Rs36310, Upside 33%) - YES Securities

Lupin - Q1FY21 First Cut - ICICI Securities

Lemon Tree Hotels - Q1FY21 First Cut - ICICI Securities







Website Created & Maintained by : Chennai Scripts
West Mambalam, Chennai - 600 033,
Tamil Nadu, India

disclaimer copyright © 2005 - 2019