Nestle India Ltd. key Products/Revenue Segments include Milk Products, Prepared Dishes & Cooking aids, Confectionery, Beverages (Powdered), Export Incentives, Other Operating Revenue for the year ending 31-Mar-2024.
Financials
For the quarter ended 31-12-2024, the company has reported a Consolidated Total Income of Rs 4784.17 crore, down -6.39% from last quarter Total Income of Rs 5110.86 crore. The company has reported net profit after tax of Rs 695.82 crore in the latest quarter. The company’s top management includes Mr.Suresh Narayanan, Mr.Suneeta Reddy, Mr.Alpana Parida, Ms.Anjali Bansal, Mr.P R Ramesh, Mr.Satish Srinivasan, Mr.Svetlana Boldina, Mr.Suresh Narayanan, Mr.Sidharth Kumar Birla, Mr.Suneeta Reddy, Mr.Alpana Parida, Ms.Anjali Bansal, Mr.P R Ramesh, Mr.Satish Srinivasan, Mr.Svetlana Boldina, Mr.Sidharth Kumar Birla. Company has S R Batliboi & Co. LLP as its auditors. As on 31-12-2024, the company has a total of 96 crore shares outstanding.Investment Rationale
Nestle posted inline topline with revenue grew 4% YoY, primarily led by price hikes, while volume growth stood at ~1% YoY. EBITDA declined 1% YoY while EBITDA margins declined 111bps YoY to 22.8% owing to a drop in gross margins by 222bps to 56.2% as coffee and cocoa prices remained firm and an increase in staff cost (up 18% YoY); however, it was offset by 6% cut in other expenses. PAT grew by 6% YoY. The ongoing RURBAN strategy enhanced Distribution reach by 5% in the last twelve months. The company continues to face significant cost challenges, with prices for coffee, cocoa, cereals, and grains remaining elevated. Meanwhile, milk, packaging, and edible oil prices remain stable. The management highlighted that if coffee prices remain elevated, it will undertake further price hikes if necessary while continuing to focus on efficiencies. Axis Securities remains optimistic about the company’s long-term prospects. With a 10% upside potential from the CMP, the brokerage maintains a BUY rating on the stock. Promoter/FII Holdings
Promoters held 62.76 per cent stake in the company as of 31-Dec-2024, while FIIs owned 10.27 per cent, DIIs 10.66 per cent.
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