Nestlé India Ltd has unveiled its financial results for the fourth quarter, revealing a consolidated net profit of ₹873.46 crore, which reflects a 6.5% decline compared to the same period last year. Despite the drop in profits, the company has proposed a final dividend of ₹10 per equity share for the fiscal year 2024-25, encouraging investor confidence amid fluctuating earnings.
Financial Performance Overview
In the latest quarter, Nestlé’s standalone net profit stood at ₹885 crore, marking a 5.3% decrease from ₹934 crore reported in the previous year’s quarter. This downturn mirrors the broader challenges faced in the food and beverage sector, where rising costs and fluctuating demand have impacted many companies.
- Q4 Consolidated Net Profit: ₹873.46 crore (down 6.5% YoY)
- Standalone Net Profit: ₹885 crore (down 5.3% YoY)
- Proposed Final Dividend: ₹10 per equity share
Revenue Insights
Nestlé’s consolidated revenue from operations reached ₹5,503.88 crore, indicating a 4.5% increase from ₹5,267.59 crore in the corresponding quarter last year. This growth can be attributed largely to domestic sales, which amounted to ₹5,234.98 crore, reflecting a 4.3% rise over the ₹5,021.61 crore reported in the previous year.
However, export sales saw a decline, dropping to ₹212.66 crore from ₹232.82 crore in March 2024. The increase in revenue was largely supported by a rise in other income, which helped offset some operational challenges.
Cost Pressures Impacting Profits
The financial results were affected by rising costs associated with materials, employee benefits, and a surge in finance expenses. These factors collectively influenced the operating performance and, ultimately, the net profits.
Nestlé’s Dividend Announcement
In light of its financial performance, Nestlé India Ltd has recommended a final dividend of ₹10 per equity share, based on a face value of ₹1 each. This decision is based on the total issued and paid-up share capital of 964,157,160 equity shares.
Stock Performance and Market Reaction
On the Bombay Stock Exchange (BSE), Nestlé’s shares opened at ₹2,435, remaining stable compared to the previous day’s closing. The stock fluctuated throughout the trading session, reaching an intraday high of ₹2,514.25 before closing lower at ₹2,392.85, resulting in a 1.7% decline post-results.
In summary, while Nestlé India’s Q4 results reveal some challenges in profitability, the company’s commitment to maintaining dividends showcases its robust long-term strategy. Investors will be closely monitoring how the company navigates the evolving market landscape in the coming quarters.
For more insights on Nestlé’s performance, you might want to explore additional financial news or stock analysis articles.
