Nestle India's board has approved an interim dividend of ₹140 per share after the company reported a net profit of ₹908 crore in the third quarter of this calendar year. The net profit was 12.8% more than Street estimates and 37.3% higher than last year's third quarter. A CNBC-TV18 poll had estimated its net profit to come in at ₹805 crore.

Share Market Live

NSE

The company's revenue of ₹5,036.8 crore was 9.5% higher than last year's ₹4,601.8 crore. However, it was 2% lower than Street estimates of ₹5,142 crore.

Sources told CNBC-TV18 that the company reported its third-quarter domestic volume growth at 4% compared to the Street estimates of 5-7% growth.

Nestle India reported its earnings before interest, taxes, depreciation, and amortization (EBITDA) at ₹1,225 crore, which was 21.3% more than last year's ₹1,009.6 crore. The Street had estimated its EBITDA to come in at ₹1,205 crore. The 24.3% margin for the third quarter this year was 220 basis points (bps) more than last year's 22.1% and 90 bps more than Street estimates of 23.4%.

The company's board also approved a stock split in the ratio of 1:10. This means each share that an investor holds will be subdivided into 10 shares. The record date will be announced later.

The stock witnessed a sharp surge after the company's quarterly earnings were out. The stock is trading 1.45% higher at ₹23,600 at 11.05 am.

In the previous quarter, the company's volume growth was marginally lower and below Street expectations.

(Edited by : Amrita)

First Published:Oct 19, 2023 11:11 AM IST