Shares of Nestle India on Thursday declined more than 3 per cent in the mid-session trade after the company's June quarter results failed to cheer investors.
The stock of Nestle India fell 3.16 per cent to Rs 22,081.75 apiece on the BSE. It was later trading at Rs 22,260.95, down 2.38 per cent over its previous close.
On the NSE, the stock opened at Rs 22,859.20, then fell to a low of Rs 22,076.05 and was later trading at Rs 22,222.25 apiece.
Meanwhile, the 30-share BSE Sensex was trading at 206.78 points or 0.31 per cent lower at 66,500.42 points.
Nestle India reported strong double digit growth across all product categories supported by broad-based growth across urban & rural markets.
"However, we estimate volume growth to be in the low single digit vs our expectation of mid-single digit. Overall commodity basket appears to be softening, which should help build back margins in subsequent quarters," Prabhudas Lilladher said in a report.
FMCG major Nestle India Ltd on Thursday reported an increase of 36.86 per cent in its net profit at Rs 698.34 crore for the second quarter ended June 30, 2023.
Nestle India's net sales rose 15.02 per cent to Rs 4,619.50 crore during the period under review, as against Rs 4,015.98 crore in the corresponding period last fiscal, the company said.
"Domestic sales growth is broad-based and grew by 14.6 per cent, on the back of prudent pricing and supported by mix and volume with targeted brand support," said Nestlé India Chairman and Managing Director Suresh Narayanan.