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Nestle India Edges Lower Even After Profit Rises 11% In June Quarter

Nestle India Edges Lower Even After Profit Rises 11% In June Quarter

Nestle India's domestic and export sales registered a double-digit growth in the quarter

Share price of Nestle India edged lower by around one per cent on Thursday, July 29, a day after the FMCG major announced its April-June quarter results for the financial year 2021-22. On Thursday, Nestle India opened on the BSE at Rs 17,967, inching to an intra day high of Rs 18,155.90 and an intra day low of Rs 17,796.25, throughout the trading session. Nestle India reported a net profit of Rs 539 crore in the first quarter of the current fiscal, compared to Rs 486 crore in the corresponding quarter last year, marking a growth of 11 per cent year-on-year.

The net profit of the manufacturer of popular noodle brand Maggi declined 10.5 per cent, compared to the profit of Rs 602 crore reported in the preceding January-March quarter of the financial year 2020-21. The company's revenue from operations in the Juen quarter stood at Rs 3,476.7 crore, compared to Rs 3,050.48 crore in the same quarter last fiscal, marking a growth of 14 per cent year-on-year.

During the June quarter, Nestle India's total sales stood at Rs 3,462 crore, compared to Rs 3,041 crore in the corresponding quarter last year, marking a growth of 13.8 per cent year-on-year. The company's domestic sales increased 13.7 per cent during the quarter. (Also Read: Nestle India Profit Rises 15% To ₹ 602 Crore In March Quarter )

Nestle India's domestic and export sales registered a double-digit growth in the quarter mostly driven by volume and mix. The company's key products such as MAGGI Noodles, Nestlé MUNCH, KITKAT, MAGGI Sauces, and MAGGI MASALAAE-MAGIC also registered strong double-digit growth, according to a regulatory filing by the firm to the stock exchanges.

The company's board also gave in-principle approval for the disinvestment of its entire minority stake of 19.98 per cent in Sahyadri Agro and Dairy Private Limited, due to changes in the business conditions.

On the NSE, Nestle India opened at Rs 17,950, inching to an intra day high of Rs 18,200 and an intra day low of Rs 17,780, throughout the session today. It settled 0.40 per cent lower at Rs 17,950 on the NSE.

On Thursday, shares of Nestle India settled 0.55 per cent lower at Rs 17,914.35 apiece on the BSE.