Nestle India April-June net profit up 11% to Rs 486.60 cr

New Delhi: FMCG major Nestle India Ltd on Tuesday reported a 11.14 per cent increase in net profit at Rs 486.60 crore for the quarter ended June 2020, helped by increase in sales.

The company, which follows January-December financial year, had posted a profit of Rs 437.79 crore in the same quarter a year ago, Nestle India said in a BSE filing.

Its net sales rose 1.96 per cent to Rs 3,041.45 crore during the quarter under review from Rs 2,982.83 crore in the corresponding period of last fiscal.

Commenting on the results, Nestle India Chairman and Managing Director Suresh Narayanan said, "The past three months have witnessed volatility, uncertainty and stresses that we had never imagined before nor experienced.

"This led to disruptions across the value chain of the company that has impacted our results, though we have built back momentum strongly as we ended the quarter."

Nestle India's domestic sales rose 2.55 per cent to Rs 2,907.74 crore in April-June quarter as against Rs 2,835.37 crore a year ago. Exports declined 9.32 per cent to Rs 133.71 crore as against Rs 147.46 crore in the corresponding quarter last year. Total expenses rose marginally to Rs 2,436.14 crore from Rs 2,414.35 crore.

During April-June, Nestle India witnessed over two-fold jump in sales from e-commerce, while 'out of home' sector performance was subdued.

"We delivered strong performance in the 'e-commerce' channel which grew by 122 per cent this quarter and now contributes 3.6 per cent to domestic sales," Narayanan said.