Results - Analysis
PAT down 5.22%
On standalone basis
Quarter ended March 2025 compared with Quarter ended March 2024.
Net sales (including other operating income) of Nestle India has increased 4.49% to Rs 5,503.88 crore. Operating profit margin has declined from 25.63% to 25.24%, leading to 2.88% rise in operating profit to Rs 1,388.96 crore. Raw material cost as a % of total sales (net of stock adjustments) increased from 41.00% to 41.87%. Purchase of finished goods cost rose from 2.27% to 2.96%. Employee cost increased from 9.23% to 9.32%. Other expenses fell from 21.90% to 21.07%.
Other income fell 68.45% to Rs 8.44 crore. PBIDT rose 1.50% to Rs 1397.4 crore. Provision for interest up 43.13% to Rs 37.5 crore. Loan funds rose to Rs 3,915.47 crore as of 31 March 2025 from Rs 344.53 crore as of 31 March 2024. Inventories rose to Rs 2,850.14 crore as of 31 March 2025 from Rs 2,089.36 crore as of 31 March 2024. Sundry debtors were higher at Rs 363.15 crore as of 31 March 2025 compared to Rs 300.46 crore as of 31 March 2024. Cash and bank balance declined from Rs 778.85 crore as of 31 March 2024 to Rs 95.59 crore as of 31 March 2025. Investments rose to Rs 705.60 crore as of 31 March 2025 from Rs 463.87 crore as of 31 March 2024 .
PBDT rose 0.69% to Rs 1359.9 crore. Provision for depreciation rose 41.09% to Rs 155.34 crore. Fixed assets increased to Rs 6,646.17 crore as of 31 March 2025 from Rs 5,201.96 crore as of 31 March 2024.
Profit before tax down 2.90% to Rs 1,204.56 crore. Provision for tax was expense of Rs 319.15 crore, compared to Rs 316.41 crore. Effective tax rate was 26.50% compared to 25.30%.
Profit after tax fell 5.22% to Rs 885.41 crore.
Equity capital stood at Rs 96.42 crore as of 31 March 2025 to Rs 96.42 crore as of 31 March 2024. Per share face Value remained same at Rs 1.00.
Promoters' stake was 62.76% as of 31 March 2025 ,compared to 62.76% as of 31 March 2024 .
Full year results analysis
Net sales (including other operating income) of Nestle India has declined 17.19% to Rs 20,201.56 crore. Operating profit margin has declined from 23.86% to 23.63%, leading to 17.97% decline in operating profit to Rs 4,773.71 crore. Raw material cost as a % of total sales (net of stock adjustments) decreased from 41.80% to 41.25%. Purchase of finished goods cost rose from 2.20% to 2.45%. Employee cost increased from 9.56% to 9.95%. Other expenses rose from 22.62% to 22.88%.
Other income fell 60.22% to Rs 58.86 crore. PBIDT fell 19.02% to Rs 4832.57 crore. Provision for interest fell 6.52% to Rs 136 crore. Loan funds rose to Rs 3,915.47 crore as of 31 March 2025 from Rs 344.53 crore as of 31 March 2024. Inventories rose to Rs 2,850.14 crore as of 31 March 2025 from Rs 2,089.36 crore as of 31 March 2024. Sundry debtors were higher at Rs 363.15 crore as of 31 March 2025 compared to Rs 300.46 crore as of 31 March 2024. Cash and bank balance declined from Rs 778.85 crore as of 31 March 2024 to Rs 95.59 crore as of 31 March 2025. Investments rose to Rs 705.60 crore as of 31 March 2025 from Rs 463.87 crore as of 31 March 2024 .
PBDT fell 19.33% to Rs 4696.57 crore. Provision for depreciation rose 0.40% to Rs 539.92 crore. Fixed assets increased to Rs 6,646.17 crore as of 31 March 2025 from Rs 5,201.96 crore as of 31 March 2024.
Profit before tax down 21.34% to Rs 4,156.65 crore. Extraordinary items were increased to Rs 290.82 crore. Provision for tax was expense of Rs 1132.97 crore, compared to Rs 1356.03 crore. Effective tax rate was 25.47% compared to 25.64%.
Profit after tax fell 15.72% to Rs 3,314.50 crore.
Equity capital stood at Rs 96.42 crore as of 31 March 2025 to Rs 96.42 crore as of 31 March 2024. Per share face Value remained same at Rs 1.00.
Promoters' stake was 62.76% as of 31 March 2025 ,compared to 62.76% as of 31 March 2024 .
Cash flow from operating activities decreased to Rs 2,936.35 crore for year ended March 2025 from Rs 4,174.79 crore for year ended March 2024. Cash flow used in acquiring fixed assets during the year ended March 2025 stood at Rs 2,008.64 crore, compared to Rs 1,882.67 crore during the year ended March 2024.
Other Highlights
The board recommended a final dividend of Rs 10 per equity share of the face value of Re 1 each for the financial year 2024-25. Record date fixed for the purpose is 4th July 2025. In Q4 FY25, domestic sales increased 4.2% YoY.Commodity Outlook: Commodity prices continue to be firm for coffee. Cocoa prices have corrected but continue to be high. Prices continue to remain stable for edible oils. Milk prices have cyclically firmed up with the onset of summers.
Management Comments :
Mr. Suresh Narayanan, Chairman and Managing Director, Nestl' India said, 'I am pleased to report that this quarter we witnessed double-digit growth in Beverages and Confectionery, with 3 out of 4 product groups delivering healthy growth. Our domestic sales crossed Rs 5,235 crore mark, the highest ever in any quarter supported by improving volume growth. My heartfelt appreciation to my colleagues in our offices, factories and salesforce for their resolve and abiding teamwork in navigating external challenges. During the financial year ended 31st March 2025, Powdered and Liquid Beverages was the largest growth contributor, with high double-digit growth. NESCAF' strengthened its leadership position by gaining market share and bringing more than 5.1 million households into the coffee category. NESCAF' Ready-to-Drink cold coffee range, one of the fastest growing segments globally, expanded its new range to India this year. Driven by cold coffee consumption among Gen Z and Millennials, it is creating entirely new coffee-drinking occasions. Confectionery grew at a high single-digit pace both in value and volume driven by KITKAT. India is the second largest market for the brand globally. Prepared Dishes and Cooking Aids posted mid-single-digit growth with MAGGI returning to volume growth and MAGGI Masala-Ae-Magic consistently demonstrating good growth. India continued to be the largest market worldwide for MAGGI. Milk Products and Nutrition was backed by launches. By reinforcing our commitment to offer nutritious choices to consumers through meaningful innovations, we achieved our ambition of introducing new CERELAC variants with no refined sugar. CEREGROW variant with no refined sugar too was launched this financial year and the early response is encouraging. The Petcare business reported high double-digit growth ' the highest ever, since its integration into the Nestl' India business. PURINA FELIX and FRISKIES cat food brands achieved high growth. PURINA PRO PLAN dog food continued to be well-received by pet owners. Out-of-Home (OOH) business delivered strong double-digit growth and is emerging as one of our fastest growing businesses. I am delighted to announce the OOH business has forayed into the 'cocoa-based spreads category' with the launch of KITKAT' Professional Spread that can be used by chefs to incorporate KITKAT's signature taste and texture in hot and cold dessert. I am happy to share that the opening of NESPRESSO's first boutique in India in New Delhi last month, has resonated exceptionally well with coffee connoisseurs. Penetration, premiumization and innovation combined with disciplined resource allocation have been key in driving growth. Since 2015 we have recalibrated and re-energised our product portfolio, by launching over 150+ new products contributing 7% of sales. To serve our consumers we have an omni-channel approach, and this implies that our brands are available at locations and channels that are most convenient for consumers. One such channel is e-commerce, which continued in its growth trajectory, propelled by the rapid expansion of Quick Commerce, contributing to 8.5% of domestic sales, in this financial year ended 31st March 2025. I am pleased to share that we remain committed in our RUrban journey. We have strengthened our route to market through a comprehensive RUrban strategy focused on five key pillars: Infrastructure, Product Portfolio, Visibility, Consumer Connect, and Technology. Our RUrban distribution touchpoints have increased to 27,730. We are present in approximately 208,500 villages. RUrban smart stores and HAAT activities in village markets have been enhanced and use and interventions with technology accelerated. We are investing approximately INR 6,500 crore between 2020 and 2025 to develop new capabilities and capacity. This not only demonstrates the strong demand for our products but also our commitment to manufacture in India and `Make in India`., The Odisha factory, our 10th citadel of growth, is being set up with an initial investment of approximately INR 900 crore, in its first phase, to manufacture products from our foods (Prepared Dishes and Cooking Aids) portfolio. The spectre of climate change is rapidly intensifying, demanding swift action. We have increased our reliance on renewable energy, implemented sustainable logistics practices, minimized waste. We continue to promote circular economy and have transitioned to sustainable packaging. Our supply chain resilience is being strengthened. Through regenerative agricultural practices greenhouse gas emissions are being reduced. We work closely with farmers and suppliers to source raw materials responsibly. One noteworthy endeavor in environmental sustainability is our proprietary technology called 'Zer`Eau' in Moga and Samalkha factories. Here water extracted from milk is recycled to reduce groundwater consumption every year by around 20%. In line with our commitment to society, we have positively impacted the lives of over 16 million beneficiaries through initiatives that align with the UN`s Sustainable Development Goals. These include rural development, education, nutrition awareness, environmental initiatives, livelihood enhancement, feeding support programs, and water and sanitation improvements. Commitment and collaboration are key pillars of our business. I would like to express my gratitude to our partners, suppliers, retailers and distributors for their trust and faith.'
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