Nestle India gained 4% to Rs 12,266 apiece, surging 7% during current week, after the company reported a 11% year-on-year (YoY) rise in net profit to Rs 438 crore for the quarter ended June 2019.
Analysts say double-digit earnings growth necessary to sustain pricey stock valuations
The dividend of Rs 203/equity share includes an interim dividend of Rs 23/equity share for 2019, and a special interim dividend of Rs 180/equity share out of the accumulated profits of FY19
FMCG product sales in the rural market in this quarter grew by a meagre 5.9%
The company, which follows January-December as its financial year, posted a net sales of Rs 2,982.83 crore
Total expenses were at Rs 2,414.29 crore in the latest quarter as against Rs 2,163.32 crore a year ago
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India unit CMD Suresh Narayanan says business is growing despite rural distress and inflationary pressure
Input cost pressure and rise in promotional spends to limit operating profit margin expansion, say experts
Activities and new launches have helped Nestle India maintain leadership positions in more than 85% of product categories
Brands like Maggi, Nescafe, Kitkat, Munch and Everyday continued to deliver strong performances
Between January and September, its net sales and net profit touched all-time highs of Rs 8,337.4 crore and Rs 1,265.17 crore
Maggi was banned in June 2015 for six months across the country following allegations it contained chemicals beyond prescribed limits
The top court had earlier stayed the proceedings before the NCDRC after Nestle had challenged it
Performance during the quarter got a boost from successful new launches in recent quarters and regaining of market share by Maggi noodles
To start selling portable coffee maker in the country next month
Nestle India's total expenses were up 1.49 per cent to Rs 21.63 billion as against Rs 21.31 billion in the same quarter a year ago
The stock slipped 5% to Rs 10,209 on the BSE in noon deal on profit booking after the company reported 50% jump in its net profit at Rs 3.95 billion in June quarter.
Nestle India had reported a better than expected 38 per cent year-on-year (y-o-y) growth in net profit at Rs 4.24 billion in the March quarter
With Rs 1.01 trillion market cap, Nestle India stands at 28th position in overall market-cap ranking at 11:23 am; the BSE data shows.