FMCG major Nestle India Ltd on Thursday reported an increase of 37.28 per cent in net profit at Rs 908.08 crore for the third quarter ended September 30, helped by a consistent performance almost across all major brands.
The company, which follows the January-December financial year, had posted a net profit of Rs 661.46 crore in the same period a year ago, Nestle India said in a regulatory filing.
Nestle India's net sales rose 9.43 per cent to Rs 5,009.52 crore during the period under review, as against Rs 4,577.44 crore in the corresponding period last fiscal, the company said.
This is the first time when the sales of Nestle India, maker of Maggi noodles, Nescafe, Kitkat, crossed Rs 5,000 crore during a quarter.
"We crossed Rs 5,000 crore turnover, which has been our first in any quarter in the history of the company and a landmark for us," said Nestle India Chairman and Managing Director Suresh Narayanan.
Consumer trends and increasing proclivity towards the adoption of brands in small towns and large villages have propelled the growth of the company, he said.
"Our RURBAN strategy remained focussed on deepening our reach in under-penetrated small towns and large villages. The power of technology has been instrumental in getting actionable insights through our analytics platform MIDAS," said Narayanan.
Nestle India's total expenses in the July-September quarter were at Rs 3,954.49 crore, up 5.92 per cent, as against Rs 3.733.12 crore in the corresponding period a year ago.
Its domestic sales were up 10.33 per cent to Rs 4,823.72 crore, as against Rs 4,371.99 crore in the September quarter of 2022.
Commenting on the results, Narayanan said: "We have, yet again, delivered consistent performance almost across all major brands. Domestic sales grew double-digit, on account of mix, volume and price."
Key brands continued to perform well, led by Kitkat, Nescafe Classic, and Nescafe Sunrise, supported by Munch and Milkmaid, he said.
Its revenue from operations, which includes other revenues as well, was at Rs 5,036.82 crore, up 9.45 per cent in the September quarter of 2023.
In the September quarter, e-commerce contributed to 6.1 per cent of sales with continued growth across product groups driven by Quick Commerce.
Similarly, Nestle India's sales witnessed a "strong double-digit growth" from the traditional organised trade channels and Out of Home (OOH) channels.
Segment-wise, Nestle's 'Prepared Dishes and Cooking Aids' continued growth, and 'Milk Products and Nutrition' continued double-digit growth. Its Confectionery business led a strong growth led by the brands Kitkat and Munch.
In 'Beverages', its Nescafe portfolio recorded strong growth with all key brands.
However, Nestle India's exports were down 9.56 per cent to Rs 185.80 crore, as against Rs 205.45 crore in the corresponding quarter a year ago.
Over the commodity outlook, Narayanan said "uneven rain and rain deficit is expected to impact production of maize, sugar, oilseeds and spices that may have an adverse impact on pricing.
"Coffee continues to be volatile because of the global supply deficit. The weather during the harvest of the Indian Robusta crop may impact production. Upcoming winter weather may impact wheat production. Healthy milk flush is expected in winter which is expected to keep prices stable," he added.
Nestle India also informed that its board in a meeting held on Thursday declared a second interim dividend for 2023 of Rs 140 per equity share of having a face value of Rs 10 per equity share amounting to Rs 1,349.82 crore.
This is in addition to the first interim dividend of Rs 27 per equity share paid on May 8, 2023.
Shares of Nestle India Ltd were trading at Rs 23,518.85 apiece on BSE in the morning trade on Thursday, up 1.07 per cent from the previous close.