Nestle India’s January-March profit has gone down by 1 pre cent at Rs 594.7 crore, which was below Street’s expectations of Rs 625 crore. The fast-moving consumer goods company reported a 10.2 per cent on-year rise in revenues from operations to Rs 3,980.7 crore for the reporting quarter.

The company said its domestic sales growth was broad-based and largely driven by volume and mix. Export sales were lower by 1 per cent largely due to change in product mix, it said.

Suresh Narayanan, chairman and managing director, Nestle India said, “In this quarter we have delivered double-digit domestic sales driven by volume and mix, which once again demonstrates the strength of our brands, consumer resonance and the resilience of the Nestlé India team and our partners,” Narayanan said adding that cost of key raw and packaging materials are witnessing 10-year high levels.

Narayanan further said that the cost continued to surge this quarter which impacted profit from operations. “Continued inflation is likely to be a key factor in the short to medium term. We are confident of facing this turbulence with strategies of scale, efficiencies, mix, and pricing all of which we will deploy judiciously,” he said.

Nestle’s earnings before interest, taxes, depreciation, and amortisation or EBITDA stood at Rs 924.4 crore, missing Street estimates. EBITDA margin stood at 23.2 percent.

Nestle India shares fell as much as 3 per cent to Rs 17,772.9 on the BSE, extending losses after the January-March earnings announcement.

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