Nestle moves with market

Nestle India did pretty well for its first quarter ended 31st March’21 (Jan-Dec year) with a 15% (YoY) jump in net profit at Rs.602 crore. Revenue was up 9% at Rs.3611 crore and this was on the back of a double-digit, 10% growth in domestic sales, driven by volume & mix and is broad based.  Exports were lower by 13% due to lower exports to affiliates.

Its e-commerce sales, which will once again become the main channel in Q2, rose 66% in Q1, contributing 4% to total domestic sales.

EBITDA was up 17% at Rs.930 crore while margins expanded from 23.9% to 25.8%.

The company also declared a Rs.25/share interim dividend, to be paid on 19th May, along with final dividend for CY20.

The stock price is moving in tandem with the market sentiment – in the red and listless. Though the numbers were better-than-expected, the stock opened some 0.6% higher at Rs.17199 but went down to Rs.16800, down over 1.5%; but buying support is seen currently at every fall.