New Delhi, July 26 (IANS) Nestle India on Wednesday reported a rise of 9.66 per cent in its net profit after tax for the second quarter (Q2) of 2017.
The company’s net profit for the April-June quarter stood at Rs 263.43 crore — up 9.66 per cent from Rs 240.22 crore during the same period in 2016.
For the quarter which ended on June 30, 2017, the total revenue from operations of the company rose by 7.25 per cent to Rs 2,484.73 crore from Rs 2,316.71 crore reported during the same period last year.
“Total sales for the quarter increased by 7.3 per cent. Domestic sales increased by 8.8 per cent mainly due to increase in volumes supported by new product launches and rebuild of Maggi Noodles, supplemented by better realisations,” the company said in a statement.
The statement pointed out that growth was negatively impacted by softer trading in June ahead of the rollout of the Goods and Services Tax (GST), while export sales dropped by 12 per cent mainly due to lower sales of milk and nutrition products to Bangladesh and the middle east.
“An energised Maggi Noodles business, encouraging responses to our new product innovation and renovation and growth across most categories, defined our performance. Our business faced softer trading conditions in June prior to the introduction of GST with trade destocking and postponing purchases,” said Suresh Narayanan, Chairman and Managing Director of Nestle India.
“However, I am happy to state that thanks to the outstanding efforts of our teams, our business partners and many others involved in systematic preparation, training and implementation, our transition has been smooth till date,” he added.
The company follows the calendar year in reporting financial results.
“The Board of Directors have declared second interim dividend for 2017 of Rs 15 per equity share (face value Rs 10 per equity share) amounting to Rs 144.6 crore, which will be paid on and from 16th August, 2017. This is in addition to the first interim dividend of Rs 15 per equity share paid on 2nd June, 2017,” the statement added.
The company scrip on the BSE slipped by 0.43 per cent to Rs 6,787.30 per share on Wednesday.
This is published unedited from the IANS feed.