Updated April 25th, 2024 at 13:42 IST

Nestle India Q1 profit beats estimates, company announces JV with Dr Reddy's

For the quarter ended March 31, Nestle India reported a net profit of Rs 934 crore, compared to Rs 737 crore in the same period last year.

Reported by: Business Desk
Nestle India | Image:Nestle India
Advertisement

Nestle India profit: Nestle India, a subsidiary of Swiss food giant Nestle, has surpassed analysts' expectations with a significant increase in its quarterly profit. The surge in profit is attributed to higher product prices and increased demand for its packaged food items.

For the quarter ended March 31, Nestle India reported a net profit of Rs 934 crore, compared to Rs 737 crore in the same period last year. This surpasses analysts' forecasts, with LSEG polling indicating an average profit expectation of Rs 871 crore.

Advertisement

The revenue from operations also witnessed a notable uptick, climbing to Rs 5,268 crore from Rs 4,831 crore a year earlier. The impressive financial performance underscores the robust demand for Nestle India's products amidst a challenging economic backdrop.

The consumer goods sector, particularly in the food industry, has experienced consistent demand for items such as chocolates and biscuits. Additionally, Nestle India, like many other companies in the sector, has adjusted its pricing strategy to safeguard profitability amid market fluctuations.

Advertisement

Earlier in the day, Nestle India announced plans for a joint venture with Dr. Reddy's Holding, where Dr. Reddy's will hold a majority stake of 51 per cent while Nestle India will hold 49 per cent. This strategic move aims to capitalise on emerging opportunities and strengthen both companies' market presence in India.

(With Reuters inputs.)

Advertisement

Published April 25th, 2024 at 13:42 IST