Shares of the popular Maggi noodle maker – Nestle India – fell as much as 1.73 per cent to hit an intraday low of ₹ 16,799 on the National Stock Exchange after it reported March quarter earnings post market hours on Tuesday. On the BSE, Nestle India shares declined as much as 1.67 per cent to hit an intraday low of ₹ 16,800. (Track Nestle India share price here)
Nestle India reported net profit of ₹ 602 crore on Tuesday, April 20, registering a growth of 14.6 per cent in the January-March quarter from ₹ 525 crore during the same period last year. Nestle India reported double-digit domestic sales growth in the quarter ending March 2021 at 10.2 per cent, while overall sales grew by 8.9 per cent to ₹ 3,600 crore.
Nestle India stated that its demand in the Out of Home channel improved in the March quarter but continues to be impacted by the COVID-19 pandemic. The e-commerce channel delivered robust performance and grew by 66 per cent, contributing almost 3.8 per cent to domestic sales.
The company’s export sales were lower by 12.9 per cent due to lesser exports to affiliates. Nestle India’s revenue from operations in the January-March quarter stood at ₹ 3,611 crore, up 8.6 per cent, compared to ₹ 3,325 crore in the year-ago period.
According to Nestle India’s statement, the company’s board of directors declared an interim dividend for 2021 of ₹ 25 per equity share, at a face value ₹ 10 per equity share, amounting to ₹ 241.04 crore. This will be paid on and from May 19, 2021, along with the final dividend for the year 2020, as approved by the shareholders.
“As the pandemic rages on, the quarter gone by has been another test of resilience of my team and our partners. I feel incredibly privileged to lead a team who faced with serious challenges, persevered regardless, to deliver double digit growth over a strong comparable in 2020,” said Mr. Suresh Narayanan, Chairman and Managing Director, Nestlé India.