Nestle India brews 11% Q1 profit rise to Rs 438 cr

New Delhi: FMCG major Nestle India on Friday reported an increase of 10.83 per cent in net profit to Rs 437.84 crore for the second quarter ended June 2019, led by sales and volume growth.

The company, which follows January-December as financial year, had posted a profit of Rs 395.03 crore for April-June 2018.

Net sales during the quarter under review were up 11.35 per cent at Rs 2,982.83 crore as against Rs 2,678.57 crore in the year-ago period, Nestle said in a BSE filing.

"We have now delivered 10 straight quarters of volume and mix led growth. Our continuing momentum is a testimony to the unrelenting efforts of our employees, partners and other stakeholders, as well as to our quest for consumer relevant, science based innovation and renovation,"Nestle India Chairman and MD Suresh Narayanan said.

Total expenses were at Rs 2,414.29 crore in the latest quarter as against Rs 2,163.32 crore a year ago.

Revenue from domestic sales in April-June 2019 was at Rs 2,835.37 crore, up 13.08 per cent from Rs 2,507.33 crore a year earlier.

Exports were down 13.88 per cent to Rs 147.46 crore as against Rs 171.24 crore earlier.

Meanwhile, Nestle also said it will ramp up its production capacity by investing around Rs 700 crore in two years to set up a new factory in Sanand, Gujarat to manufacture its range of popular instant noodles Maggi.

Nestle India would soon commence construction of its ninth plant, which would generate employment to around 400 people, it said in a statement.

"In line with our commitment to 'Make in India', we will soon commence construction of our newest, and ninth factory in India, at Sanand, Gujarat," said Narayanan.

This plant would be a "significant step" in enhancing Nestle's manufacturing footprint in India, he added.