Nestle India on Thursday posted a 38% year-on-year rise in net profit to Rs 424 crore for the three months ended March 31, 2018, on the back of higher sales boosted by volume growth across categories. Total sales were up 6.3% to Rs 2,737 crore supported by increase in volumes.
However, the company said the growth rates were impacted due to lower reported sales by the change in structure of indirect taxes and reduction in realisations to pass on the GST benefits. However, on a comparable basis, domestic sales growth is estimated at 13.4%.
Suresh Narayan, chairman and MD, Nestle India said, the results are in line with the company’s strategy of broad-based growth through increased penetration. Ebitda was up 35% y-o-y to Rs 754 crore, while the operating margins increased a sharp 550 basis points to 27.5%.