Nestle India Shares Drop on Disappointing Q1 Earnings
Jul 25, 2024 17:45
Nestle India's shares fell 2.50% after its June quarter earnings missed market expectations, despite a 6.9% rise in net profit. The company faced a challenging environment with lower consumption growth.
Illustration: Uttam Ghosh/Rediff.com
New Delhi, Jul 25 (PTI) Shares of FMCG major Nestle India Ltd dropped 2.50 per cent on Thursday as the firms' June quarter earnings failed to meet market expectations.
The FMCG major's stock ended at Rs 2,480.40, lower by 2.49 per cent on the BSE. During the day, it lost 3.29 per cent to Rs 2,460.
On the NSE, it declined 2.49 per cent to Rs 2,477.95 apiece.
Nestle India Ltd on Thursday reported an increase of 6.9 per cent in its net profit at Rs 746.60 crore for the quarter that ended June 2024.
The company had posted a net profit of Rs 698.34 crore in the April-June period a year ago, according to a regulatory filing from Nestle India.
On Nestle India's Q1 FY25 results, Akriti Mehrotra, Research Analyst at StoxBox, said, resilience in a challenging environment but misses street estimates.
Nestle India's revenue from the sale of products was up 3.75 per cent to Rs 4,792.97 crore in the June quarter as against Rs 4,619.50 crore in the corresponding period last fiscal.
The company, which owns popular brands such as Maggi, KitKat and Nescafe faced a challenging environment during the quarter with a lower consumption growth in the market.
Nestle India's domestic sales were up 4.24 per cent to Rs 4,608.50 crore in the June quarter, as against Rs 4,420.77 crore in the corresponding period last year.
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