Monday, November 28, 2022

Nestle India March Quarterly Preview | Brokerage profits expect double-digit growth in revenue

Must read

FMCG company Nestle India expects to report double-digit growth in the bottom line as well as topline, with higher single-digit growth for the quarter ended March 2021 compared to the year-ago period.

Continued growth in Maggi, baby foods, chocolate segment, etc. is likely to boost business, feel brokerage.
“Nestle is likely to report 10.8 percent revenue growth with sustained growth in Maggi noodles. In addition, the introduction of new products and distribution expansion in rural areas are also supporting the growth,” said ICICI Direct. 11.8% annual growth is expected. Year (yo).

The company was able to grow at a slower pace of 7.9 percent in CY20, despite the pace of strong growth in canned foods mainly due to a lack of supply in the noodles segment. The brokerage believes Nestle will continue moderate growth in the March quarter 2021.

Also read : Tata Steel supplies 300 tonnes of oxygen per day for COVID treatment: CEO TV Narendran

KR Choksi expects Nestle India to report a 12.3 percent YoY revenue growth in Q1 CY21 due to increased demand for ready-to-eat products such as Maggi, dairy products, KitKat and coffee as well as growth from online delivery. Led. Channel. The brokerage said the topline will also be supported by the increase in rural demand.
According to Sharekhan, volume growth is expected to be in the high single digits.

The company follows January-December as its fiscal year.

Also read : Wall Street slips to record levels; Tesla falls after fatal car accident

The stock has not changed significantly in the last 12 months as well as in the current year. It fell 7.3 percent so far in CY21, and gained only 0.4 percent in the past one-year period, while a 51 percent increase and 0.1 percent in the Sensex over the same period.
At the operating level, Kotak forecast a 200bps yo expansion in gross margin on the back of price increases, partially offset by rising milk prices. The brokerage, which saw a 12.6 percent yo increase in EBITDA, said, “We expand the EBITDA margin.

KR Choksi predicted an 84 percent increase in EBITDA margin due to the operational efficiencies the company incurred and in particular the decrease in advertising expenses was offset by an increase in milk prices.

The brokerage said the key points would be to guide price and volume, capacity utilization levels, segment product mixes, new product launches or innovation and cost control initiatives.

Also read : Aditya Birla files DRHP with SEBI for Sun Life AMC IPO

- Advertisement -
- Advertisement -

More articles

LEAVE A REPLY

Please enter your comment!
Please enter your name here

- Advertisement -spot_img

Latest article