Nestle India Q4 Results Review - Recovery Expected In Ensuing Quarters: Dolat Capital

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. .Dolat Capital Report.Nestle India Ltd.’s Q4 CY22 Ebitda came inline but revenue and adjusted profit after tax missed our estimates. The company reported 13.8% YoY growth in the domestic market driven by healthy volume and mix led growth while exports business posted 17.1% YoY increase. On a three-year compound annual growth basis, revenues increased by 10.6% - indicates acceleration in overall growth. E-com channel posted strong 46% growth fueled by new formats - ‘quick commerce’ and ‘click and mortar’. E-com grew 41% in CY22 contributing 6.5% in domestic sales.  Gross margin decline by 210 basis points YoY mainly attributed to higher inflation related to cereals, grains and coffee. While edible oil, crude oil and packaging costs witnessed softening by the end of the quarter, milk is expected to remain firm due to lumpy skin disease in H2 CY22. Though revenue and adjusted profit after tax performance during Q3 was below our estimate, we have broadly maintained CY23/24E earnings per share estimates as we believe that the demand for Nestle’s products would improve with the improvement in the economic uptrend. As the company has leadership position and unique positioning in most of the categories, we believe that it’s growth rate would remain high. Further, Nestle’s margins would improve gradually with softening in commodity prices..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 Oswal.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 - Recovery Expected In Ensuing Quarters: Dolat Capital

As Nestle has leadership position and unique positioning in most categories, we believe that it’s growth rate would remain high.

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