Thu Oct 17 18:50:27 UTC 2024: ## Nestle India Reports Solid Q2 Profit Despite Challenging Market Conditions

**MUMBAI, INDIA -** Nestle India, the country’s leading FMCG company, has reported a robust 9% year-on-year increase in its net profit for the July-September quarter, reaching Rs 986.4 crore. However, the company’s stock took a hit, closing down nearly 4% after the results fell slightly short of analyst expectations.

Despite a challenging environment characterized by muted consumer demand and soaring commodity prices, Nestle India managed to maintain its growth trajectory. The company’s total sales rose by 1.3% to Rs 5,074.8 crore, while domestic sales registered a 1.2% growth.

Nestle India’s Chairman and Managing Director, Suresh Narayanan, attributed the company’s resilience to its strategic focus. “Despite a challenging external environment, we remained resilient in our pursuit to deliver growth,” Narayanan said. He highlighted that five of the company’s top 12 brands witnessed double-digit growth, while some faced pressure due to softer consumer demand. The company has implemented robust action plans to address the challenges impacting these brands.

Narayanan added that a positive trend is emerging, with 65% of the company’s top 12 brands, including the iconic MAGGI noodles, exhibiting positive volume growth over the past nine months.

Despite the positive performance, Nestle India’s EBITDA (earnings before interest, tax, depreciation and amortisation) came in slightly lower than analysts’ expectations at Rs 1,150 crore. The company’s profit margin also contracted to 22% during the quarter.

Analysts have attributed the stock’s dip to the results falling below expectations, particularly in terms of EBITDA and margin. However, they remain optimistic about Nestle India’s long-term growth prospects, given the company’s strong brand portfolio and its proven ability to navigate challenging market conditions.

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