Nestle India’s Strong Q3 Performance Pushes Share Price to Record High

Nestle India's Strong Q3 Performance Pushes Share Price to Record High

VoM News Desk | October 19, 2023 | 04:31 PM IST | Breaking News | Follow on Google News

Nestle India’s Strong Q3 Performance Pushes Share Price to Record High

Nestle India’s Strong Q3 Performance Pushes Share Price to Record High

Nestle India’s share price surged over 4% to reach a new all-time high following the company’s impressive performance in the September quarter (Q3CY23).

Nestle’s share price opened at ₹23,279.90 and climbed approximately 4.12% to reach a record high of ₹24,228.75 during the trading session. The stock ultimately closed 3.66% higher at ₹24,122.

Stellar Q3 Results

During the day, Nestle India reported a net profit of ₹908 crore for the quarter ending in September 2023, reflecting a remarkable 37.27% growth from ₹661.46 crore during the same period the previous year. It’s worth noting that the net profit for the quarter included a one-time gain of ₹106.4 crore.

The company’s revenue for Q3CY23 increased by 9.5% to ₹5,036.8 crore from ₹4,601.8 crore in the corresponding year-ago period. EBITDA in the July-September quarter also saw a substantial increase, rising by 21.3% to ₹1,225 crore from ₹1,009.6 crore, year-on-year. However, the EBITDA margin decreased by 220 basis points (bps) to 24.3% from 22.1% year-on-year.

Dividends and Stock Split

The board of directors of Nestle India declared a second interim dividend payout of ₹140 per equity share, amounting to ₹1,349.82 crore. This dividend will be paid from November 16, 2023, in addition to the first interim dividend of ₹27 per equity share paid earlier in the year. The board also approved the subdivision of shares, splitting existing fully paid-up equity shares with a face value of ₹10 each into ten (10) equity shares with a face value of Re 1 each, pending approval from company members.

Positive Expert Views

Analysts have expressed positivity regarding Nestle India’s post-Q3 results, highlighting strong volume growth and the company’s growth plans, including expansion into rural areas. They also acknowledged the favorable impact of premium product launches and declining commodity prices on the company’s performance.

VoM News Desk

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