Nestle India Q2 earnings: Net profit at Rs 1,026 crore, stock plunges 9% 

Nestle India Ltd shares were trading lower on Thursday after the firm reported its Q2 earnings. Nestle India stock fell 9% to Rs 1259 in the afternoon session today against the previous close of Rs 1384.15. Market cap of the firm slipped to Rs 2.53 lakh crore. Profit after tax rose 36.3% to Rs 1,026.8 crore against Rs 753.2 crore profit in the corresponding quarter a year ago. Total sales rose to Rs 6,782.2 crore in Q2 against Rs 5630.2 crore in the year ago period.

Total sales growth stood at 20.5% and domestic sales growth came at 20.4%

EBITDA margins came at 23.8% and Earnings per share came at Rs 5.32 in Q2 against Rs 3.90 in the year ago period.

Manish Tiwary, Chairman and Managing Director, Nestle India, said: I am pleased to share that the quarter saw a continuation of strong and broad-based growth across all product groups, with total sales reaching Rs 6,782.2 crore, with a growth of 20.5%, that was driven by robust, double-digit volume growth. We continued to focus on efficiencies across our operations while
significantly increasing investments behind our brands, with advertising and marketing spends up by 46%.

On the outlook of commodity prices, the firm said "Coffee and wheat are expected to remain range-bound, while sugar and edible oils have stabilized at elevated levels. Cocoa remains volatile due to weather-driven crop concerns in key origins. Milk prices have strengthened seasonally but should ease as flush supplies arrive."