Nestle India drops over 2% as Q1 net profit slips to Rs 259.2 crore

NEW DELHI: Nestle India Ltd plunged as much as 2.3 per cent in trade on Wednesday, after the FMCG major said that its net profit for the quarter ended March 31 dropped 7.1 per cent from a year ago to Rs 259.2 crore.

The company had posted a profit of Rs 279.09 crore in the January-March quarter a year earlier. Operating margins were hit by high price of milk solids, the packaged food maker said in a statement.

At 09:30 a.m.; Nestle India was trading 1.8 per cent lower at Rs 4761. It hit a low of Rs 4735 and a high of Rs 4800 in trade today.

Net sales rose to Rs 2,313.46 crore from Rs 2,248.08 crore in the same period of the previous year, Nestle India said in a BSE filing.

"The first-quarter results are broadly as expected and in line with our strategy, which was alluded to in my comments while announcing the full year 2013 results," PTI said quoting Nestle India Managing Director Etienne Benet.

He said Nestle would continue to take decisions to move towards being a leader of nutrition, health and wellness in India.