Nestle India Share Price Tanks 4% After Muted Q2 Results
Nestle India share price was trading at Rs 2,375.50 apiece, down by 3.52%, on the NSE against the benchmark Nifty's dip of 0.7% around 1:12 pm.
(Source: Company)
Nestle India Ltd.'s share price dropped 4% on Thursday after the company reported a marginal decline in its net profit for the July to September 2024 quarter. The company posted a net profit of Rs 899.5 crore in Q2, marking a 0.9% year-on-year dip from Rs 908 crore in the year-ago period.
The consensus estimate of analysts tracked by Bloomberg had projected a profit of Rs 882 crore for Nestle India in Q2.
Despite opening higher at Rs 2,474.95 apiece on the NSE, shares of Nestle India slipped to an intraday low of Rs 2,365 apiece, triggered by muted Q2 results.
The KitKat chocolate maker’s revenue was up by 1.3% at Rs 5,104 crore for the quarter ended September 2024, as compared to Rs 5,037 crore in the corresponding period of the previous fiscal. The Bloomberg estimate for the same was Rs 5,243 crore.
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Nestle India posted a 4.7% dip in its Ebitda to Rs 1,168 crore versus Rs 1,226 crore in Q2 FY24. The Bloomberg estimate for the company’s Ebitda in Q2 FY25 was Rs 1,302 crore.
Margin was down to 22.9% YoY during the period under review as compared to 24.3% in Q2 last fiscal. Bloomberg estimated the company’s margins to remain at 24.4%.
Nestle India, in a separate exchange filing, stated that it has appointed Manish Tiwary as the managing director of the company. He will succeed Suresh Narayanan, who is set to retire on July 31, 2025.
Tiwary’s appointment as non-retiring director and managing director of the company will come into effect from August 1, 2025, for a term of five consecutive years. He will commence his role as the managing director (designate) on February 1.
Nestle India share price was trading at Rs 2,375.50 apiece, down by 3.52%, on the NSE against the benchmark Nifty's dip of 0.7% around 1:12 pm. Shares of Nestle India have declined 10.74% on a year-to-date basis in 2024. The stock has gained 1.05% in the past one year while it slipped 2.04% in the past six months.
