Nestle India Q3 Results: Net profit up 5% to ₹688.01 crore, revenue rises 4%; volume growth at 3%

Nestle India on Friday reported a consolidated net profit of ₹688.01 crore for the October-December quarter of the current fiscal (Q3 FY25), up 4.9% as against ₹655.61 crore posted in the year-ago period.

The company's revenue from operations for the reporting quarter increased by 3.9% to ₹4,779.73 crore from ₹4,600.42 crore in Q3 FY24.

Nestle India shares are trading 4.21% up at ₹2,310.80 apiece on the NSE on Friday, January 31. The shares surged by over 6% following the strong quarterly performance.

The company's standalone net profit surged 6% year-on-year (YoY) to ₹696.13 crore for Q3 FY25 ₹655.61 crore in the year-ago period. Its standalone revenue from operations grew 3.9% to ₹4,779.73 crore.

Interim dividend declared

Nestle India’s board also approved an interim dividend of ₹14.25 per equity share with a face value of ₹1 each. The record date for the dividend, the second one for the current fiscal year (2024-25), has been fixed as February 7. The eligible shareholders will be paid on or before February 27.

The Maggi instant noodles brand Nestle reported a domestic volume growth of 3%, performing better than the street estimates of 1-2%. The domestic sales, which were at ₹4,566 crore, accounted for 95% of the company's total revenue. It was up by 3.27% YoY as against ₹ 4,422 crore reported in the last fiscal. Nestle India's key brands performed well in the reporting quarter.

Other highlights

The company's Earnings Before Interest, Taxes, Depreciation and Amortisation (EBITDA) for the December quarter increased to ₹1,103 crore, up from ₹1,095 crore in Q3FY24. The EBITDA margin stood at 23%.

“This quarter 3 out of 4 product groups delivered healthy growth led by a combination of pricing and volume. Key brands continue to perform, and this augurs well in a challenging environment," Suresh Narayanan, Chairman and Managing Director of Nestlé India said while commenting on the Q3 results.

He added, "Our powdered and liquid beverages business was the largest growth contributor this quarter, with high double-digit growth. Beverage's retail achieved a significant milestone by surpassing ₹2,000 crore business in the last twelve months."

On a quarter-on-quarter (QoQ) basis, the company reported a 23.5% decline in its net profit for Q3 FY25 at ₹688.01 as compared to ₹899.49 reported in Q2 FY25. Revenue from operations of the company declined by 6.3% on a sequential basis from ₹5,104 crore reported in the September quarter.