The 5.2% dip in net profit, despite a 4% revenue increase. It’s not surprising that this would squeeze margins, given how central those ingredients are to some of their flagship products like Nescafé and KitKat.
Even though the revenue growth of 4% is positive, the comparison to the previous year’s 9% increase suggests a potential slowdown in momentum. It will be interesting to see if this trend continues in future quarters and what strategies Nestlé India might employ to address it.
The dividend declaration of ₹10 per share is likely welcome news for investors, even amidst the slightly downbeat profit report.Finally, the market’s reaction with a 1.57% share price drop after the earnings announcement seems to reflect the concerns around the profit decline, even with the revenue growth. It suggests investors are closely watching how Nestlé India navigates these cost pressures.