Nestle India down 5%

Right since the opening bell, Nestle India has been among the top five losers on the BSE, opening almost 2% lower at Rs.16,900 and going down 5% to Rs.16,360.

The market is disappointed with the earnings of the company, following which many brokerages downgraded the stock though maintained their positive outlook for the long term.

The performance as such is not bad but because it missed ‘estimates’ the stock has been beaten down. The company reported a 2% (YoY) rise in net profit at Rs.483 crore on a 9% rise in revenue from operations at Rs.3433 crore. This performance was mainly driven by domestic sales, which rose 10% while exports fell 8%. The increase 8% in expenses and tax outgo is what impacted the bottomline.

EBITDA was up 12% at Rs.777 crore and margin showed small increase from 22% to 22.6%.

The company follows Jan-Dec year ending, and this was its fourth quarter performance.

The company also declared a final dividend of Rs.65/share.