New Delhi, Nov 10 (PTI) FMCG major Nestle India today reported a 23.26 per cent increase in its net profit at Rs 343.17 crore for the September quarter, driven by higher income and volume-led momentum.
The company, which follows the January-December fiscal, had posted a net profit of Rs 278.41 crore during the same period in the previous fiscal, Nestle India said in a stock exchange filing.
Total sales during the quarter under review stood at Rs 2,500.67 crore. It was Rs 2,412.91 crore in July-September of 2016-17.
On a comparable basis, the domestic sales growth is estimated at 9.1 per cent on the back of increase in volumes, including rebuilding of Maggi noodles, the company said.
Total sales for the quarter increased by 3.6 per cent, it added.
Total expenses during the period stood at Rs 2,011.30 crore compared to Rs 2,029.48 crore in the year-ago period.
The company said sales, absolute expenses and expenses in percentage of sales for the quarter ended September are not comparable with the previous periods due to GST implementation from July 1.
“With the change in structure of indirect taxes, expenses are also being reported net of taxes,” it added.
On the results, Nestle India Chairman and Managing Director Suresh Narayanan said: “I am pleased with the sustained volume-led growth momentum across all product groups. The dedication and commitment of the team and our partners have ensured a smooth transition into the GST regime.”
He further said “our thrust on innovation and renovation continued with the launch of Maggi nutri-licious noodles, Milkybar and KitKat dessert delight”.
The increase in volumes, the company said, was supplemented by better realisations from previous periods and netted by the price drops taken to pass on the GST benefits to the consumers.
Export sales increased by 2.6 per cent, it added.
Nestel India stock closed 0.29 per cent down at Rs 7,770.10 on the BSE today.
This is published unedited from the PTI feed.