Nestle India Ltd Q2CY2021 net profit drops QoQ to Rs. 538.58 crores

NESTLE INDIA LTD. has reported financial results for the period ended June 30, 2021.

Financial Results (Q2 CY2021) - QoQ Comparison

The company has reported total income of Rs.3506.17 crores during the period ended June 30, 2021 as compared to Rs.3640.47 crores during the period ended March 31, 2021.

The company has posted net profit / (loss) of Rs.538.58 crores for the period ended June 30, 2021 as against net profit / (loss) of Rs.602.25 crores for the period ended March 31, 2021.

The company has reported EPS of Rs.55.86 for the period ended June 30, 2021 as compared to Rs.62.46 for the period ended March 31, 2021.

Financials	Q2 CY2021	Q1 CY2021	% Change
Total Income	₹ 3506.17 crs	₹ 3640.47 crs	-3.69%
Net Profit	₹ 538.58 crs	₹ 602.25 crs	-10.57%
EPS	₹ 55.86	₹ 62.46	-10.57%

Financial Results (Q2 CY2021) - YoY Comparison

The company has reported total income of Rs.3506.17 crores during the period ended June 30, 2021 as compared to Rs.3088.41 crores during the period ended June 30, 2020.

The company has posted net profit / (loss) of Rs.538.58 crores for the period ended June 30, 2021 as against net profit / (loss) of Rs.486.60 crores for the period ended June 30, 2020.

The company has reported EPS of Rs.55.86 for the period ended June 30, 2021 as compared to Rs.50.47 for the period ended June 30, 2020.

Financials	Q2 CY2021	Q2 CY2020	% Change
Total Income	₹ 3506.17 crs	₹ 3088.41 crs	13.53%
Net Profit	₹ 538.58 crs	₹ 486.60 crs	10.68%
EPS	₹ 55.86	₹ 50.47	10.68%

Financial Results (6 months ended CY 2021) - YoY Comparison

The company has reported total income of Rs.7146.64 crores during the 6 months period ended June 30, 2021 as compared to Rs.6456.53 crores during the 6 months period ended June 30, 2020.

The company has posted net profit / (loss) of Rs.1140.83 crores for the 6 months period ended June 30, 2021 as against net profit / (loss) of Rs.1012.03 crores for the 6 months period ended June 30, 2020.

The company has reported EPS of Rs.118.32 for the 6 months period ended June 30, 2021 as compared to Rs.104.97 for the 6 months period ended June 30, 2020.

Financials	6 Months Ended CY2021	6 Months Ended CY2020	% Change
Total Income	₹ 7146.64 crs	₹ 6456.53 crs	10.69%
Net Profit	₹ 1140.83 crs	₹ 1012.03 crs	12.73%
EPS	₹ 118.32	₹104.97	12.72%

Commenting on the results, Mr. Suresh Narayanan, Chairman and Managing Director, Nestlé India said, "The needs of the community and supporting our people always take precedence over everything else in a crisis. Those are the values and the purpose that has defined us, which we take pride in and cherish. At the same time, as a leading food and beverage company, ensuring supplies of much needed products to consumers is the call of duty that unites all of us at Nestlé India!

Despite the enormous challenges during the devastating second wave of the pandemic in this quarter, I am immensely proud of the resolve of my team and our partners. An unwavering determination, empathetic teamwork, singular commitment and resolute focus ensured that much needed food and beverage products were available to our consumers. A simple, yet innovative example of this wasthe timely implementation of a 'telecaller model' to take orders across trade channels. Our front-line sales colleagues stood tall to overcome serious logistical obstacles and ensure availability. Our efforts to ensure last mile access were aided by e-commerce and in particular hyperlocal (quick commerce) channels which grew by 147% in the first half of this year.

Last year, our commitment to India made us articulate an ambition to invest INR 2,600 Crore (INR 26 Billion) over a 3-4-year period. I am pleased to announce that out of this, we have already invested about INR 1,000 Crore (INR 10 billion) thus far. This is a vindication of our confidence and trust in the Nestlé journey in India.

In moments of crisis like this pandemic, our strong values and purpose ensure that we never lose sight of the well-being of society at large, by being a “Force for Good”. We have continued to offer employment opportunities, developmental vistas for talent and have welcomed over 1,000 people through regular hiring, apprenticeship and internship into the Nestlé India family during the first half of this year. Generating employment is vital for the nation and we are trying to play our part towards this.

At the same time, providing succour to distressed and less fortunate sections of our society is also a calling we heed. We contributed about INR 15 Crore (INR 150 Million) towards CSR spends in the areas of nutrition awareness, COVID relief initiatives etc this quarter. Further, our unwavering focus on sustainability continues and we have invested about INR 25 Crore (INR 250 Million) in a range of projects in the first half of the year."

Shares of NESTLE INDIA LTD. was last trading in BSE at Rs. 17988 as compared to the previous close of Rs. 18238.45. The total number of shares traded during the day was 4804 in over 1687 trades.

The stock hit an intraday high of Rs. 18338 and intraday low of 17900. The net turnover during the day was Rs. 86380875.

Source : Equity Bulls

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