Nestle hits new high as Q1 profit beats estimates; inches towards Rs 10,000

Nestle India hit a new high of Rs 9,610, up 7% on the market in intra-day trade, inches towards Rs 10,000 mark after the company reported a better than expected 38% year on year (YoY) growth in net profit at Rs 4.24 billion in March 2018 quarter (Q1CY18).
Analysts on an average had expected profit of Rs 4.06 billion for the quarter from the fast moving consumer goods (FMCG) company.

Domestic sales grew 13.4% at Rs 25.60 billion on a comparable basis, adjusted for Goods and Services Tax (GST). Exports were up 6% at Rs 1.78 billion.

“During the quarter the company has sustained growth momentum, which is backed by broad volume based growth across categories. This is in line with the company’s strategy of broad based growth through increased penetration,” said Suresh Narayanan, Chairman and Managing Director, Nestle India.

EBIDTA (EBITDA (Earnings before interest, tax, depreciation and amortization) margin improved 25.5% in Q1CY18 from 22.5% in Q4CY17 and 20.9% in Q1CY17.