The shares of this Switzerland-based FMCG company, jumped up 7 percent intraday after the company announced their Q3 results for FY25, and the Board has also approved their second interim dividend for FY25.
Price Action
With a market capitalization of Rs 2,25,082.49 crore, Nestle India Limited rose 1.3 percent in Friday’s trading session and made an intraday high of Rs 2,387.45 per share compared to its previous closing price of Rs 2,218.75 per share. The stock reiterated from its day’s high and was trading at Rs 2,334.50 which is 5.22 percent higher than the previous closing price.
What Happened
The shares of Nestle India Limited surged after the company reported its Q3FY24-25 results. Its revenue from operations grew by 3.8 percent year on year from Rs 4,600.4 crore to Rs 4,779.7 crore in Q3FY25. However, on a quarter-on-quarter basis, it fell 6 percent from Rs 5,104 crore in Q2FY25.
This was accompanied by a 5 percent increase in net profits from Rs 655.6 crore to Rs 688 crore in Q3FY24. However, on a quarter-on-quarter basis, the net profit fell 23.5 percent from Rs. 899.4 crore.
Further, the company’s EPS increased by 5 percent year on year from Rs 6.8 to Rs 7.14. On a quarterly basis, the EPS fell by 23.5 percent from Rs 9.33.
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Dividend Announcement
The Board has announced an interim dividend of Rs 14.25 per equity share, representing 1,425 percent on a face value of Rs 1. The dividend will be paid on and from February 27, 2025. The record date to determine eligible shareholders is set on February 7, 2025.
Company Overview
Switzerland-based Nestle holds a 62 percent stake in its subsidiary Nestle India Limited. It is primarily involved in the food business and operates under popular brand names such as Nescafe, Nestea, Kit Kat, Milkybar and Maggi among many others in the country.
The company ranks among the top two in multiple product categories, such as milk products, nutrition, beverages, prepared dishes, cooking aids, and chocolate and confectionery. With a vast distribution network, the company reaches over 10,000 distributors and 5.2 million retail outlets across the country.
Written by Shwetha Sairam
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