Nestle India has posted a net profit of Rs 396 m for the quarter ended March 31, 2001. This is a significant 41% higher than Rs 281 m it had posted in the corresponding period last year. The company's turnover improved 30% YoY during the same period.
Operating Profit (EBDIT)
Operating Profit Margin (%)
Profit before Tax
Profit after Tax/(Loss)
Net profit margin (%)
No. of Shares (eoy) (m)
Earnings per share*
Current P/e ratio
The growth in net profit is mainly due to increased sales, favourable commodity prices and the product mix being skewed in favour of higher margin products. This increase has been partially offset by the costs associated with new businesses viz. water and liquid milk.
Nestle also managed to decrease its interest burden by 26% during the period. At the current price of Rs 537 the stock trades at a P/e multiple of 33 times its annualised 1QFY02 earnings, which is on the higher side of the FMCG valuations.
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