FMCG major Nestle India Ltd reported a 14.62 percent rise in its net profit to Rs 602.25 crore for the quarter ended in March 2021 driven by an increase in sales volume of its key products.
The company, which follows January-December financial year, had posted a profit of Rs 525.43 crore in the same period a year ago.
Its net sales were up 8.9 percent to Rs 3,600.20 crore during the period under review as against Rs 3,305.78 crore in the corresponding period last fiscal, the company said in a BSE filing.
According to the company, “Growth broad-based and largely driven by volume and mix” as “key products boosted by in-home consumption and posted double-digit growth”. Though demand in ''Out of Home'' channel further improved in the quarter but continues to be impacted by COVID.
Nestle India’s domestic sales were up 10.17 percent to Rs 3,442.03 crore as against Rs 3,124.23 crore of the January-March of 2020. While export sales were down 12.9 percent to Rs 158.17 crore as against Rs 181.55 crore of the corresponding quarter.
“Domestic Sales increased by 10.2 percent driven by volume and mix and is broad-based. Export Sales were lower by 12.9 percent due to lower exports to affiliates,” said Nestle India in a post-earnings statement.
Nestle India has witnessed 66 percent growth in sales from the e-commerce channel, which contributed 3.8 percent of domestic sales.
“Noteworthy has been e-commerce which continued to deliver strong performance and grew by 66 percent to maintain its robust contribution to our domestic sales,” it said.
In the January-March quarter, Nestle's total expenses were up 6.16 percent to Rs 2,828.61 crore as against Rs 2,664.27 crore of the corresponding period.
Commenting on the results, Suresh Narayanan, Chairman, and Managing Director, Nestlé India said, "As the pandemic rages on, the quarter gone by has been another test of the resilience of my team and our partners. I feel incredibly privileged to lead a team who faced with serious challenges, persevered regardless, to deliver double-digit growth over a strong comparable in 2020."