News

Published: October 23, 2023
Updated: October 23, 2023

Nestle India's Q3CY23 Performance: Strong Profit Growth and Stock Split

Nestle India has reported robust financial results for the third quarter of the current calendar year (Q3CY23), with a substantial increase in profits. In addition to this impressive performance, the company has also made significant announcements regarding dividends and a stock split.

Profit Surge:

Nestle India Limited witnessed a remarkable 37.28% increase in its net profit for Q3CY23, amounting to Rs 908.08 crore. This significant growth is compared to Rs 661.46 crore in the same quarter of the previous year. Sequentially, the net profit also saw a substantial rise of 30.03% when compared to the previous quarter, Q2CY23, where the net profit was Rs 698.34 crore.

Dividends and Stock Split:

Nestle India declared a second interim dividend of Rs 140 per equity share, with a face value of Rs 10 each for the year 2023. Furthermore, the company announced a stock split, wherein each fully paid-up equity share with a face value of Rs 10 will be split into 10 equity shares with a face value of Re 1 each.

Revenue Growth:

The revenue from operations in Q3CY23 reached Rs 5,036.8 crore, indicating a substantial increase of 9.45% when compared to Rs 4,601.8 crore in the previous year. On a quarter- on-quarter basis, the revenue for operations showed an 8.12% increase, reaching Rs 4,658.5 crore in Q2CY23.

Total Income:

Nestle India reported a total income of Rs 5,070.1 crore for Q3CY23, marking a notable growth of 9.44% compared to Rs 4,632.5 crore in the previous year. On a quarter-on-quarter basis, the total income increased by 8.27%, reaching Rs 4,682.5 crore in Q2CY24.

Key Brands and Investments:

Suresh Narayanan, Chairman and Managing Director of Nestle India, highlighted the strong performance of key brands such as Kitkat, Nescafe Classic, Nescafe Sunrise, Munch, and Milkmaid. The company's investments in brand equity and product groups have contributed to its success. In a historic milestone, the company achieved a turnover of over Rs 5,000 crore in a single quarter, showcasing remarkable progress.

E-commerce and Retail Channel Growth
The company's e-commerce channel played a significant role, contributing to 6.1% of the quarterly sales and displaying consistent growth across product groups. Nestle India's retail channel also delivered strong double-digit growth.

Nestle India's outstanding financial performance in Q3CY23, marked by substantial profit growth and rising revenues, demonstrates the company's strength and resilience in the market. The announcement of a stock split and healthy dividends further adds to the positive outlook. Nestle India continues to invest in brand equity and product groups, ensuring its sustained growth in the future.