Nestle India Ltd Q2CY2020 PAT drops QOQ to Rs. 486.6 crore

NESTLE INDIA LTD. has reported financial results for the period ended June 30, 2020.

Financial Results (Q2 CY2020) - QoQ Comparison

The company has reported total income of Rs.3088.41 crores during the period ended June 30, 2020 as compared to Rs.3368.12 crores during the period ended March 31, 2020.

The company has posted net profit / (loss) of Rs.486.6 crores for the period ended June 30, 2020 as against net profit / (loss) of Rs.525.43 crores for the period ended March 31, 2020.

The company has reported EPS of Rs.50.47 for the period ended June 30, 2020 as compared to Rs.54.50 for the period ended March 31, 2020.

Financials	Q2 CY2020	Q1 CY2020	% Change
Total Income	₹ 3088.41 crs	₹ 3368.12 crs	-8.3%
Net Profit	₹ 486.6 crs	₹ 525.43 crs	-7.39%
EPS	₹ 50.47	₹ 54.50	-7.39%

Financial Results (Q2 CY2020) - YoY Comparison

The company has reported total income of Rs.3088.41 crores during the period ended June 30, 2020 as compared to Rs.3073.44 crores during the period ended June 30, 2019.

The company has posted net profit / (loss) of Rs.486.6 crores for the period ended June 30, 2020 as against net profit / (loss) of Rs.437.79 crores for the period ended June 30, 2019.

The company has reported EPS of Rs.50.47 for the period ended June 30, 2020 as compared to Rs.45.41 for the period ended June 30, 2019.

Financials	Q2 CY2020	Q2 CY2019	% Change
Total Income	₹ 3088.41 crs	₹ 3073.44 crs	0.49%
Net Profit	₹ 486.6 crs	₹ 437.79 crs	11.15%
EPS	₹ 50.47	₹ 45.41	11.14%

Financial Results (6 months ended CY 2020) - YoY Comparison

The company has reported total income of Rs.6456.53 crores during the 6 months period ended June 30, 2020 as compared to Rs.6149.58 crores during the 6 months period ended June 30, 2019.

The company has posted net profit / (loss) of Rs.1012.03 crores for the 6 months period ended June 30, 2020 as against net profit / (loss) of Rs.900.53 crores for the 6 months period ended June 30, 2019.

The company has reported EPS of Rs.104.97 for the 6 months period ended June 30, 2020 as compared to Rs.93.40 for the 6 months period ended June 30, 2019.

Financials	6 Months Ended CY2020	6 Months Ended CY2019	% Change
Total Income	₹ 6456.53 crs	₹ 6149.58 crs	4.99%
Net Profit	₹ 1012.03 crs	₹ 900.53 crs	12.38%
EPS	₹ 104.97	₹93.40	12.39%

Mr. Suresh Narayanan, Chairman and Managing Director, Nestlé India said, "In these extremely challenging times, at Nestlé, we hark back to our 'Purpose' which enshrines our inspiration for actions - 'We unlock the power of food to enhance quality of life for everyone, today and for generations to come', and serves as our guiding light. This has translated, for each of us, to deliver unimpeachable safety in every pack we produce, harness the best quality of nutrition, deliver memorable taste and enjoyment but also serve the consumers while protecting the numerous employees, partners, stakeholders and suppliers (large and small) in these difficult times.

Health and safety of our people will always remain our top priority wherever they are and whichever capacity they work. We are determined to protect, respect & nurture the sustenance of thousands who depend on Nestlé operations in the value chain, be it suppliers, small MSMEs, milk farmers, distribution partners and numerous others whose collective efforts make us Nestlé! This quarter is a tribute to each one of them and I would like to express my heartfelt gratitude!

The past three months have witnessed volatility, uncertainty and stresses that we had never imagined before nor experienced. This led to disruptions across the value chain of the Company that has impacted our results, though we have built back momentum strongly as we ended the quarter. Relentless efforts, determined professional actions and abiding teamwork has led us to restore our eight factories almost to their pre-COVID manufacturing capabilities and our distribution capacity goes from strength to strength. It is a tribute to all our employees, partners & stakeholders who are imbued in the Nestlé culture of respect and quiet but determined dedication. While we progress each day, challenges in sales and distribution due to precautionary and well-intended measures taken by the authorities do cause disruptions.

We delivered strong performance in the 'e-commerce' channel which grew by 122% this quarter and now contributes 3.6% to domestic sales. The demand in all 'Out of Home' consumption channels experienced a sharp decline due to the lockdown. However Nestlé brands enjoy trust, credibility and strength as far as "in home consumption" is concerned and this boosted sales of EVERYDAY Dairy Whitener, Nestlé a+ Milk, other milk based portfolio, NESCAFÉ Classic and NESCAFÉ Sunrise, all of which performed well this quarter. MAGGI also witnessed solid growth towards the end of the quarter after initial supply constraints. Overall, we accelerated our digital engagements across key parts of our portfolio, put out innovative campaigns to engage the consumers in many, while ensuring judicious application of marketing spends in line with the current business scenario.

As a responsible corporate citizen, we continue to offer our help, in particular to the most vulnerable in society. Nestlé India contributed toward relief efforts in particular towards providing PPEs, medical equipment and feeding programs for communities through participation with leading NGOs along with distribution of essential groceries to the needy."

Shares of NESTLE INDIA LTD. was last trading in BSE at Rs.17367.7 as compared to the previous close of Rs. 17231.4. The total number of shares traded during the day was 2715 in over 1183 trades.

The stock hit an intraday high of Rs. 17400 and intraday low of 17220.95. The net turnover during the day was Rs. 47025816.

Source : Equity Bulls

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