Nestlé beats profit estimates, launches JV with Dr Reddy’s

Nestlé India Ltd on Thursday reported a 26.8% jump in January-March profit, beating street estimates, helped by softer milk prices.

Quarterly revenue from operations grew 9% to ₹5,267.59 crore. Profit for the period stood at ₹934 crore, up from ₹736.6 crore reported in the year-ago period, the company said in a filing to the exchanges. Nestlé India’s Ebitda margin expanded by 2.41 percentage points to 25.4% in the final quarter of FY24.

Ebitda, or earnings before interest, taxes, depreciation and amortization, is a measure of operating profitability.

“I am pleased to share that we have delivered doubledigit growth, despite challenges posed by rising food inflation and volatile commodity prices. We have witnessed a strong growth momentum across our product portfolio led by a combination of pricing and mix,” Suresh Narayanan, chairman and managing director, Nestlé India, said.

However, the company warned of “unprecedented headwinds” in prices of key commodities such as coffee and cocoa, with all-time-high prices and an ongoing price rally. “Cereals and grains are going through a structural cost increase backed by MSP. Milk prices are expected to rise on account of expected harsh summer,” it said.

On Thursday, the company