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HomeMarket NewsNestle India Q1 Results: Higher costs impact operational performance; Stock falls
Nestle India's Earnings Before Interest, Tax, Depreciation and Amortisation (EBITDA) for the quarter remained flat from last year to ₹1,100 crore, which was marginally below the ₹1,135 crore estimates.
Shares of Nestle India Ltd. fell as much as 4% on Thursday, July 24, after the company reported its June quarter results.
Net profit for the period stood at ₹646.5 crore, which is lower than the CNBC-TV18 poll of ₹732 crore. On a year-on-year basis. On a year-on-year basis, the bottomline declined by 13.5% from last year.
Revenue for the quarter increased by 6% to ₹5,096 crore, which were in-line with the expectations of ₹5,080 crore.
Earnings Before Interest, Tax, Depreciation and Amortisation (EBITDA) for the quarter remained flat from last year to ₹1,100 crore, which was marginally below the ₹1,135 crore estimates.
Nestle India highlighted that borrowing from commercial banks to fund temporary operational cash-flow requirements, resulted in higher finance costs during the quarter.
EBITDA margin narrowed to 21.6% from 22.9% last year, and also below the CNBC-TV18 poll estimate of 22.3%.a
Shares of Nestle India fell as much as 4% after the results announcement, but have recovered from the lows of the day to trade 2.8% lower at ₹2,384.7.
