Nestlé India Limited reported its financial results for the second quarter of fiscal year 2024, showcasing strong growth across several key metrics. For the six months ended September 30, 2024, the company’s profit before tax reached ₹2,209.5 crore, compared to ₹2,161.35 crore in the corresponding period of the previous year. This growth was largely driven by increased revenues and operational efficiency.
Revenue and Income Growth
Nestlé India reported revenue from operations of ₹9,965.39 crore for the first half of FY24, reflecting a significant rise from ₹9,755.27 crore in the same period last year. The company’s domestic sales stood at ₹9,491.64 crore, with a robust contribution from exports, which were reported at ₹376.09 crore. This highlights the company’s continued focus on both the domestic market and international expansion.
Cost Efficiency and Expenses
Despite the revenue growth, Nestlé India faced increased expenses, particularly in the cost of materials consumed, which amounted to ₹3,968.40 crore for the six months ended September 30, 2024, compared to ₹3,849.76 crore in the prior period. Employee benefits and other expenses also saw a marginal rise, reflecting the company’s ongoing investments in its workforce and operational capabilities.
However, the company managed to control certain cost elements, including a reduction in impairment losses on property, plant, and equipment, which declined to ₹2.56 crore from ₹4.45 crore. The depreciation and amortization charge for the period was ₹234.31 crore, slightly up from ₹218.52 crore in the prior year.
Profit Before and After Tax
Nestlé India’s profit before exceptional items and tax for the six-month period stood at ₹2,209.5 crore, a steady rise from ₹2,161.35 crore recorded in the same period last year. After accounting for taxes and exceptional items, the profit after tax for the period came in at ₹1,646.9 crore, marking consistent profitability despite challenging market conditions.
Future Outlook
Nestlé India’s performance in Q2 FY24 reflects its strong market position and ability to navigate cost pressures while delivering growth in revenue and profitability. With continued focus on cost management and strategic market expansions, the company is well-positioned to maintain its trajectory of stable financial performance in the upcoming quarters.
Key Figures:
- Profit Before Tax: ₹2,209.5 crore (up from ₹2,161.35 crore)
- Revenue from Operations: ₹9,965.39 crore
- Domestic Sales: ₹9,491.64 crore
- Cost of Materials Consumed: ₹3,968.40 crore
- Employee Benefits Expenses: ₹1,007.07 crore
- Profit After Tax: ₹1,646.9 crore
Disclaimer: The information provided in this article is based on the company’s unaudited financial results and is for informational purposes only. Readers are advised to seek independent financial advice before making any investment decisions.
