NEW DELHI: Leading FMCG maker Nestle India on Thursday reported that its net profit during the June quarter grew by 7% year-on-year to Rs 746.6 crore compared to Rs 698.3 crore in the same quarter last fiscal.
The revenue surged 3.3% YoY to Rs 4,814 crore. Both the topline and bottomline figures were below Street estimates as most analysts were expecting the Maggi maker to report PAT at about Rs 800 crore and revenue at about Rs 5,000 crore.
Nestle said commodity prices are seeing unprecedented headwinds in coffee and cocoa with all-time high prices and an ongoing price rally.
“Cereals and grains are going through a structural cost rise backed by MSP. There is relative stability in milk prices, packaging and edible oils,” the company said.
Meanwhile, Nestle India and Dr Reddy’s Laboratories announced the formation of a joint venture, which will be called Dr. Reddy’s and Nestlé Health Science Ltd.