Nestle India Q4 Results Review - Margin Surprise: Axis Securities

BQ Prime’s special research section collates quality and in-depth equity and economy research reports from across India’s top brokerages, asset managers and research agencies. These reports offer BQ Prime’s subscribers an opportunity to expand their understanding of companies, sectors and the economy. .Axis Securities Report.Nestle India Ltd. delivered resilient all-round performance, led by strong double-digit growth across all categories, primarily led by price growth. Domestic revenue grew 14% YoY (tonnage volume declined 1% on account of price increase in price sensitive low unit packs), exports grew ~18% YoY led by continued expansion in the new markets and channels. Furthermore, the management reiterated its Rurban strategy is fueling the overall rural growth, despite rural continuing to witness a slowdown. Gross margins declined 204 basis points YoY to 54.6% owing to raw material inflation. However, on a positive front, it was down QoQ 208 bps as raw material prices declined sequentially. Nestle India's Ebitda margins at 23% stood flat despite gross margin pressure owing to the company’s tight control on employee cost and lower ad spends. The company’s adjusted profit after tax grew ~13% YoY..Click on the attachment to read the full report:.More Research Reports On Nestle India's Q4 CY22 Results Review.Weak Volume; Cost Control Supports Margin: HDFC SecuritiesInline; Volumes Under Pressure: Motilal OswalRecovery Expected In Ensuing Quarters: Dolat CapitalPrice Hike In Low Unit Packs Impacts Volumes: ICICI DirectVolume Weakness Offset By Unexpected Margin Improvement: Systematix.DISCLAIMERThis report is authored by an external party. BQ Prime does not vouch for the accuracy of its contents nor is responsible for them in any way. The contents of this section do not constitute investment advice. For that you must always consult an expert based on your individual needs. The views expressed in the report are that of the author entity and do not represent the views of BQ Prime..Users have no license to copy, modify, or distribute the content without permission of the Original Owner.

Nestle India Q4 Results Review - Margin Surprise: Axis Securities

Nestle India's Ebitda margins at 23% stood flat despite gross margin pressure.

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