Nestle India Q1 Results Preview: Net profit likely to rise 21%, margin may expand by 300 bps

Nestle India Q1 2024 Results Preview, Nestle India March quarter earnings: Consumer products company Nestle India is all set to report its financial results for the quarter ended March 31 on Thursday, April 25. Analysts expect Gurugram-headquartered Nestle India—whose popular brands include Maggi, Milkybar, Kit Kat, Nescafe and Milkmaid—to stage a strong financial performance for the first three months of 2024 on the back of mid-single-digit volume growth and easing raw material costs.

What to expect in Nestle India first-quarter results 

According to Zee Business research, Nestle India is likely to register a consolidated net profit of Rs 894 crore for the January-March period, which translates into an increase of 21.3 per cent compared with the corresponding period a year ago. The analysts peg the company’s revenue at Rs 4,965 crore for the quarter ended March 31, 2024, as against Rs 4,831 crore for the year-ago period. 

Nestle India follows a January-December financial year. 

Nestle India is estimated to log March-quarter earnings before interest, taxes, depreciation and amortisation (EBITDA) of Rs 1,308 crore, up 15.9 per cent on a year-on-year basis, according to the research. 

Zee Business analysts expect Nestle India’s margin—a key measure of profitability—to be at 26 per cent for the March quarter as against 23 per cent a year ago. They see the consumer products maker registering 5.0 per cent growth in March volumes and  3-4 per cent in value. 

According to Zee Business research, Nestle India is likely to log growth to the tune of 9.0 per cent in domestic revenue in the March quarter. 

Nestle India March-quarter earnings: Key things to look out for 

Investors will look out for the following four key things in the consumer products company’s upcoming earnings report: 

• Volume growth
• Demand trends
• Raw material prices
• Distribution expansion 

Nestle India shares: Past performance 

As of April 23, Nestle India shares have grown almost 21 per cent in the past year, though underperforming a 26 per cent rally in the headline Nifty50 index and a 15.5 per cent gain in the Nifty FMCG gauge. 

The stock finished the March quarter 1.4 per cent weaker, again underperforming a gain of 2.7 per cent and a fall of 6.0 per cent in the Nifty50 and Nifty FMCG indices, respectively. 

Meanwhile, in January, Nestle India split each of its shares of the face value of Rs 10 apiece into 10 equity shares of the face value of Re 1 apiece. Read more on Nestle India share split

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