Nestle India on Thursday said its net profit fell 1.25 per cent year-on-year (YoY) to Rs 594.71 crore in March quarter compared with Rs 602.25 crore in the same quarter last year. This is even as revenue from operations rose 10.24 per cent YoY to Rs 3,980.70 crore from Rs 3,610.82 crore in the year-ago quarter.
The FMCG company said its domestic sales growth was broad-based and largely driven by volume and mix. Export sales were lower by 1 per cent largely due to change in product mix, it said.
Other income decreased thanks to lower average liquidities, partly offset by higher yields. Suresh Narayanan, Chairman and Managing Director, Nestlé India said, “In this quarter we have delivered double-digit domestic sales driven by volume and mix, which once again demonstrates the strength of our brands, consumer resonance and the resilience of the Nestlé India team and our partners,” Narayanan said adding that cost of key raw and packaging materials are witnessing 10-year high levels. The costs, he said, continued to surge this quarter which impacted profit from operations. “Continued inflation is likely to be a key factor in the short to medium term. We are confident of facing this turbulence with strategies of scale, efficiencies, mix and pricing all of which we will deploy judiciously,” he said.