Newsletter
Nestle India reported its first quarter numbers, missing street estimates. The stock plunged 6% on the back of the results.
The financials:
Net Profit: ₹646.6 crore vs ₹746 cr, down 13.5% YoY
Revenue: ₹5,096 crore vs ₹5,080 crore, up 6%
Margins: 21.6% vs 22.09%
The deets: company said that net profit declined due to higher raw material and finance costs earnings despite growth in key categories. Borrowing from commercial banks to fund temporary operational cash-flow requirements, also resulted in higher finance costs during the quarter.
The company sees rising urban demand, stabilising prices for edible oil and cocoa, a drop in coffee prices, and expects milk prices to fall with a good monsoon.
Key trigger ahead: Manish Tiwary will take on the role of Chairman and Managing Director from 1st August 2025.
