Nestle crosses Rs.10,000-mark
In the opening bell session, Nestle crossed the Rs.10,000-mark to hit a new 52-week high at Rs.10,050. It has come off this level and it back to four-figures at Rs.9965 levels.
This almost always happened every time there is news of monsoon being on time or even on arrival of the rains. FMCG companies are direct beneficiaries of a bountiful monsoon as it leaves rural India with a good harvest, which in turn means more spending power.
In an interview, the CMD of Nestle India, Suresh Narayanan said, “The monsoon at least this year, seems to be on time. We are an agro-based economy by large, and to that extent, it augurs well...We look forward to stability of demand and hopefully better growth."
The company had ended the March quarter (first quarter as its year ending is 31st Dec) with a good performance – though its net sales rising fell over 6% (YoY) at Rs.2737 crore, net profit was at Rs.424 crore, up 38%. Operating profit rose 35% at Rs.697 crore and margins showed a sharp improvement from 19.96% to 25.27%.