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Nestle India Q3 results: Profit falls marginally to Rs 587 crore, sales up 10%

Nestle India Q3 results: The company has announced to invest Rs 2,600 crore in India over the next three to four years to boost its existing manufacturing capacities

Chitranjan Kumar | October 23, 2020 | Updated 21:36 IST
Nestle India Q3 results: Profit falls marginally to Rs 587 crore, sales up 10%
Nestle India Q3 profit declines marginally to Rs 587 crore

Nestle India, which owns instant noodles brand Maggi, on Friday reported a 1.4 per cent year-on-year decline in its net profit at Rs 587 crore for the third quarter ended September 30 of calendar year 2020, compared to Rs 595.3 crore in year-ago period. On the quarter-on-quarter basis, the profit jumped 20.7 per cent from Rs 486.6 crore in April-June quarter, which was impacted by coronavirus-led nationwide lockdown.

Revenue from operations increased 10.1 percent to Rs 3,541.7 crore from Rs 3,215.8 crore in the corresponding period last year, Nestle India said in a filing to the Bombay Stock Exchange.

Buoyed by Nestle journey in India, the company has announced to invest Rs 2,600 crore in India over the next three to four years to boost its existing manufacturing capacities.

"As a vindication of the confidence and trust in the Nestle journey in India, I am pleased to share that we plan to invest Rs 2,600 crore over the next three-to-four years to augment existing manufacturing capacities, as well as towards new under-construction state-of-the-art factory in Sanand, Gujarat," the management said in the earnings report.

Nestle India's net sales rose 10.19 per cent to Rs 3,525.41 crore in Q2 FY21 as against Rs 3,199.31 crore in the corresponding quarter of the last fiscal. Domestic sales was up 10.23 per cent at Rs 3,350.10 crore compared to Rs 3,039.09 crore in the year-ago period. Exports rose 9.41 per cent to Rs 175.31 crore as against Rs 160.22 crore in the same period last year.

Also Read: Nestle India Q2 profit rises 11% to Rs 487 crore, domestic sales up 2.6%

"The quarter witnessed growth driven by an improved supply situation, as factories returned to normal output. Boosted by an increase in in-home consumption, key brands like MAGGI Noodles, MAGGI Sauces, KITKAT, Nestle MUNCH, NESCAFE CLASSIC and NESCAFE SUNRISE witnessed double-digit growth," Suresh Narayanan, Chairman and Managing Director said.

Nestle India's board has also declared interim dividend of Rs 135 per equity share of Rs 10 each for the year 2020 on the entire issued, subscribed and paid up share capital of the company of 9,64,15,716 equity shares. The interim dividend will be paid on and from November 20, 2020, it said.

Also Read: YES Bank Q2 results: Profit Rs 129 crore, provisions down 11%

The board also approved the appointment of Matthias C. Lohner, as Whole-time Director, designated as 'Executive Director - Technical' effect from November 1, 2020, for a term of five years, subject to requisite approvals, in place of Martin Roemkens.

The company said that Matthias has over 23 years of rich experience in Nestle Group and held various positions of increasing responsibility in Vietnam, Mexico, El Salvador, Canada, Chile. Currently he is Operations Manager, Nescafe Dolce Gusto, Global Business Unit based in Switzerland. He brings with him a diverse background with experience around different Markets and Zones including Nestle Head Office at Switzerland, it added.

Ahead of Q3 results, shares of Nestle India ended 0.3 per cent lower at Rs 1,5863 on the BSE.



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