• OUTLOOK ARENA
  • VIEWS ON NEWS
  • APRIL 25, 2001

Nestle: 1QFY02 net up 41%

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.

(Rs m) 1QFY01 1QFY02 Change FY01
Net Sales 3,478 4,516 29.8% 15,820
Other Income 28 21 -25.0% 107
Expenditure 2,965 3,742 26.2% 13,080
Operating Profit (EBDIT) 513 774 50.9% 2,740
Operating Profit Margin (%) 14.7% 17.1%   17.3%
Interest 38 28 -26.3% 149
Depreciation 92 108 17.4% 379
Profit before Tax 411 659 60.3% 2,319
Tax 120 173 44.2% 805
Extraordinary expenses -10 -90 800.0% -328
Profit after Tax/(Loss) 281 396 40.9% 1,186
Net profit margin (%) 8.1% 8.8%   7.5%
No. of Shares (eoy) (m) 96.4 96.4   96.4
Earnings per share* 11.7 16.4   12.3
Current P/e ratio   32.7   43.7
*(annualised)        

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.

Copyright © Equitymaster Agora Research Private Limited. All rights reserved.
Any act of copying, reproducing or distributing this newsletter whether wholly or in part, for any purpose without the permission of Equitymaster is strictly prohibited and shall be deemed to be copyright infringement.

LEGAL DISCLAIMER: Equitymaster Agora Research Private Limited (Research Analyst) bearing Registration No. INH000000537 (hereinafter referred as 'Equitymaster') is an independent equity research Company. Equitymaster is not an Investment Adviser. Information herein should be regarded as a resource only and should be used at one's own risk. This is not an offer to sell or solicitation to buy any securities and Equitymaster will not be liable for any losses incurred or investment(s) made or decisions taken/or not taken based on the information provided herein. Information contained herein does not constitute investment advice or a personal recommendation or take into account the particular investment objectives, financial situations, or needs of individual subscribers. Before acting on any recommendation, subscribers should consider whether it is suitable for their particular circumstances and, if necessary, seek an independent professional advice. This is not directed for access or use by anyone in a country, especially, USA, Canada or the European Union countries, where such use or access is unlawful or which may subject Equitymaster or its affiliates to any registration or licensing requirement. All content and information is provided on an 'As Is' basis by Equitymaster. Information herein is believed to be reliable but Equitymaster does not warrant its completeness or accuracy and expressly disclaims all warranties and conditions of any kind, whether express or implied. Equitymaster may hold shares in the company/ies discussed herein. As a condition to accessing Equitymaster content and website, you agree to our Terms and Conditions of Use, available here. The performance data quoted represents past performance and does not guarantee future results.

SEBI (Research Analysts) Regulations 2014, Registration No. INH000000537.

Equitymaster Agora Research Private Limited (Research Analyst)
103, Regent Chambers, Above Status Restaurant, Nariman Point, Mumbai - 400 021. India.
Telephone: +91-22-61434055. Fax: +91-22-22028550. Email: info@equitymaster.com. Website: www.equitymaster.com. CIN:U74999MH2007PTC175407