Nestle India Q4 Preview: Ebitda likely to grow 16% YoY; volumes may grow 5-6%

Nestle India share price, Nestle India results Preview: Nestle India, one of the leading packaged food and beverage companies, is expected to post a healthy set of numbers for the December quarter (Q4 FY24). The company, which houses over 2,000 brands, including names such as Maggi, Nescafe, and KitKat, among others, is slated to release its financial results for the fourth quarter of the ongoing fiscal on Wednesday, February 7.

It must be noted that Nestle has followed a calendar-year cycle until now. However, in July 2023, the company announced that it would change its financial year to the April-March cycle.

"The current Financial Year of the Company shall be extended upto 31st March 2024 covering a period of 15 months commencing from 1st January 2023 to 31st March 2024 and subsequent Financial Years of the Company would begin from 1st April every year and end with 31st March of the subsequent year," Nestle India said in its filing.

According to Zee Business Research, the company will post 10 per cent year-on-year (YoY) growth in consolidated revenue for the quarter under review at Rs 4,700 crore against Rs 4,257 crore logged in the year-ago period.

EBITDA, or earnings before interest, taxes, depreciation, and amortisation, is expected to increase by 16 per cent YoY to Rs 1,132 crore. Margins are also expected to grow by 100 basis points (bps) to 24 per cent while net profit, or profit after tax (PAT), is likely to surge by 19 per cent YoY to Rs 749 crore.

Further, the company is expected to post volume growth in the range of 5–6 per cent. A 10 per cent hike in price, as well as distribution expansion, will aid growth, as per the research desk.

The demand outlook for rural versus urban markets, competitive intensity, and trends in raw materials will be key updates to watch out for.