Nestle India posted a 14.62 per cent increase in net profit for the quarter ended March 31, 2021, on the back of double-digit growth in domestic sales. The Maggi-Noodles-maker reported a net profit of Rs 602.25 crore during the quarter under review, as opposed to Rs 525.43 crore in the year-ago period.
Domestic sales under the March quarter stood at Rs 3,442.03 crore, 10.17 per cent higher than Rs 3,124.23 crore in the same quarter previous fiscal. Nestle's revenue from operations was recorded at Rs 3,610.82 crore in Q1 2021, compared to Rs 3,325.27 crore in Q1 2020. The company saw total sales worth Rs 3,600.2 crore during the March quarter this year, up from Rs 3,305.78 crore in the same quarter last year. Export sales slumped 12.9 per cent during the quarter to Rs 158.17 crore
Profit from operation at Rs 840.2 crore was 23.3 per cent of sales, Nestle India mentioned in a regulatory filing on Tuesday. Total income for the quarter under review was Rs 3,640.47 crore, as against Rs 3,368.12 crore in the corresponding quarter previous fiscal.
Earnings per share increased to Rs 62.46 during Q1 2021 from Rs 54.50 in Q1 2020 and Rs 50.12 in Q4 2020. Nestle follows the January-December financial year.
Cost of materials consumed as a per cent to sales decreased due to lower commodity prices than in the corresponding quarter of 2020, particularly milk and its derivatives, Nestle India said, adding that other expenses increased largely due to higher advertising and sales promotion spends.
"Noteworthy, has been e-commerce which continued to deliver strong performance and grew by 66 per cent to maintain its robust contribution to our domestic sales," said Suresh Narayanan, Chairman and Managing Director, Nestle India. "While the Nestle India family has learnt to cope with the operating volatility in the pandemic, recent sharp escalations in key raw material prices pose challenges that we will resolutely respond to while maintaining the integrity of our business model."
Narayanan further stated that vaccination camps will be organised across the company's manufacturing locations for its workers as the country enters the third phase of its vaccination programme.
The Nestle board of directors also declared an interim dividend of Rs 25 per equity share (face value INR 10 per equity share) for 2021. The dividend, amounting to Rs 241.04 crore, will be paid on and from May 19, 2021, along with the final dividend for the year 2020, Nestle announced.