Nestle India — the maker of Maggi instant noodles — is likely to report a jump of 59 per cent in net profit to Rs 617 crore for the quarter ended December 2022 compared with the corresponding period a year ago, according to Zee Business research. The company is estimated to see strong growth momentum in the quarter aided by price hikes and distribution expansion.

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The FMCG major will report its quarterly financial results on Thursday, February 16.

Investors will closely look out for the management's remarks on demand and input costs.

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The company's revenue is estimated to grow 16 per cent to Rs 4,341 crore compared with the year-ago period, according to the research.

The analysts peg the company's earnings before interest, taxes, depreciation, and amortisation (EBITDA) at Rs 936 crore for the three-month period, as against Rs 866 crore for the quarter ended December 2021.

Nestle India's sales volumes are expected to rise 4.5 per cent in the quarter ended December, with a strong performance in the rural market and the packaged foods segment.

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The company is likely to face margin pressure thanks to material costs. According to Zee Business research, Nestle's margin — a key measure of profitability — is estimated to contract by 170 basis points on a year-on-year basis to 21.5 per cent.

Nestle shares have risen six per cent in the past one year, a period in which the Nifty50 basket gained four per cent.