Shares of Nestle India fell on Thursday after the company’s earnings for the quarter ended June missed street expectations.
What Happened: The Indian arm of the Swiss food giant reported a net profit of ₹746.6 crore in the April to June quarter. This marked a 6.9% rise from ₹698.34 crore in the same period a year ago. Sequentially, net profit declined 20% from ₹934.17 crore.
The company's operational revenue saw a 3.3% year-on-year jump to ₹4,813 from ₹4,658.5 crore. The numbers failed to meet analyst estimates.
The Maggi maker’s total income stood at ₹4,853 crore. The company saw domestic sales of ₹4,608 crore whereas income from export sales was at ₹184.4 crore.
The board of directors declared an interim dividend for the current financial year 2024-25 of ₹2.75 per equity share, earlier this month.
Earlier this week, Nestle's competitor Hindustan Unilever Limited (HUL) also reported its quarterly earnings. HUL's net profit jumped 3% year-on-year to ₹2,538 crore. Total standalone revenue also rose 2% to ₹15,596 crore.
The fast-moving consumer goods stocks surged following the Budget announcement on Tuesday, when Finance Minister Nirmala Sitharaman announced a slew of measures to boost rural consumption.
Price Action: Nestle India's shares were down 1.52% at ₹2,502.85 on Thursday morning.
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