Thu Oct 17 19:15:47 UTC 2024: ## Nestle India’s Profit Dips, Shares Fall 4%
**Mumbai, India** – Nestle India Ltd. saw its share price tumble by 4% on Thursday following a report of a marginal decline in net profit for the July-September 2024 quarter. The company reported a net profit of Rs 899.5 crore, a 0.9% drop year-on-year compared to Rs 908 crore in the same period last year.
Analysts tracked by Bloomberg had projected a profit of Rs 882 crore for the quarter, indicating that Nestle India’s performance fell short of expectations.
The company’s revenue for the quarter rose by 1.3% to Rs 5,104 crore, up from Rs 5,037 crore in the previous fiscal. However, this figure also fell short of the Bloomberg estimate of Rs 5,243 crore.
EBITDA, or earnings before interest, taxes, depreciation, and amortization, saw a steeper decline of 4.7% to Rs 1,168 crore, compared to Rs 1,226 crore in Q2 FY24. The Bloomberg estimate for EBITDA in Q2 FY25 was Rs 1,302 crore.
The decline in profit was attributed to a dip in margins, which fell to 22.9% year-on-year, compared to 24.3% in the same period last year. Bloomberg had estimated the company’s margins to remain at 24.4%.
Despite the disappointing results, Nestle India announced the appointment of Manish Tiwary as the company’s new managing director. He will take over from Suresh Narayanan, who is set to retire on July 31, 2025. Tiwary will assume the role of managing director (designate) on February 1, and his appointment as non-retiring director and managing director will take effect on August 1, 2025, for a five-year term.
The share price of Nestle India was trading at Rs 2,375.50 apiece, down by 3.52%, on the NSE at 1:12 pm, against the benchmark Nifty’s dip of 0.7%. The stock has declined 10.74% year-to-date in 2024, despite gaining 1.05% in the past year and slipping 2.04% in the last six months.
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