Nestle India Ltd reports jump in net profit to Rs. 602.25 crore in Q1CY21

NESTLE INDIA LTD. has reported financial results for the period ended March 31, 2021.

Financial Results (Q1 CY2021) - QoQ Comparison

The company has reported total income of Rs.3640.47 crores during the period ended March 31, 2021 (Q1 CY2021) as compared to Rs.3463.18 crores during the period ended December 31, 2020 (Q4 CY2020).

The company has posted net profit of Rs.602.25 crores for the period ended March 31, 2021 as against Rs.483.31 crores for the period ended December 31, 2020.

The company has reported EPS of Rs.62.46 for the period ended March 31, 2021 as compared to Rs.50.12 for the period ended December 31, 2020.

Financials	Q1 CY2021	Q4 CY2020	% Change
Total Income	₹ 3640.47 crs	₹ 3463.18 crs	5.12%
Net Profit	₹ 602.25 crs	₹ 483.31 crs	24.61%
EPS	₹ 62.46	₹ 50.12	24.62%

Financial Results (Q1 CY2021) - YoY Comparison

The company has reported total income of Rs.3640.47 crores during the period ended March 31, 2021 (Q1 CY2021) as compared to Rs.3368.12 crores during the period ended March 31, 2019 (Q1 CY2020).

The company has posted net profit of Rs.602.25 crores for the period ended March 31, 2021 as against Rs.525.43 crores for the period ended March 31, 2019.

The company has reported EPS of Rs.62.46 for the period ended March 31, 2021 as compared to Rs.54.50 for the period ended March 31, 2019.

Financials	Q1 CY2021	Q1 CY2020	% Change
Total Income	₹ 3640.47 crs	₹ 3368.12 crs	8.09%
Net Profit	₹ 602.25 crs	₹ 525.43 crs	14.62%
EPS	₹ 62.46	₹ 54.50	14.61%

Key Highlights:

- Domestic Sales achieve double digit growth, on a 10.7% strong growth base in Q1 2020.
- Growth broad based and largely driven by volume and mix.
- Key products boosted by in home consumption, posted double digit growth.
- E-Commerce channel grew by 66% and contributed 3.8% of domestic sales.
- Recently, witnessing headwinds in commodity and packaging materials.
- Initiating vaccination camps for those eligible at factory locations.
- Achieved plastic neutrality across all brands in 2020.

Commenting on the results, Mr. Suresh Narayanan, Chairman and Managing Director, Nestlé India said, "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. It's a proud moment to witness consumer trust and love for key brands like MAGGI NOODLES, KITKAT, NESCAFÉ CLASSIC, MAGGI SAUCES, MILKMAID, MAGGI MASALA-AE-MAGIC deliver robust performance and achieve double digit growth.

Noteworthy, has been e-commerce which continued to deliver strong performance and grew by 66% to maintain its robust contribution to our domestic sales.

While the Nestlé India family haslearnt to cope with the operating volatility in the pandemic, recent sharp escalations in key raw material prices poses challenges that we will resolutely respond to, while maintaining the integrity of our business model.

In these pandemic times, as a responsible organisation, our PEOPLE are at the centre of our attention and we are taking all possible steps to take care of them as best as we can. In collaboration with authorities, we are looking at setting up vaccination camps across our manufacturing locations. This will provide with ease, much needed vaccination of our factory employeesin the eligible age group. We are pleased to be in the process of extending our pioneering industry commitment of Nestlé Suraksha medical insurance protection, to our distributor salesforce against COVID-19 for an additional year. Our strong commitment to the educated youth in India gained new strides with an additional 1000 internships through our Nesternship program for young professionals this year. Which adds to our efforts to offer nearly 1000 interns last year with worthwhile project exposure.

At a time when the clarion call to generate employment opportunities assumes new meaning, we have remained unwavering in our hiring commitments. In recent times, we have welcomed over 500 new members to our Nestlé family across our operating locations. In addition, the scale of our operations is also creating indirect employment opportunities in the surrounding communities.

Sustainability is at the core of our operations. Our determination to make a difference in the area of plastic waste management, has shown significant results. I am happy to share that across ALL our brands, we managed plastic equivalent to post consumer plastic waste generated by the brands in 2020, thereby ensuring plastic neutrality."

Shares of NESTLE INDIA LTD. was last trading in BSE at Rs.17086.25 as compared to the previous close of Rs. 17090.35. The total number of shares traded during the day was 3872 in over 1576 trades.

The stock hit an intraday high of Rs. 17371.5 and intraday low of 16885.5. The net turnover during the day was Rs. 66257321.

Source : Equity Bulls

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