Nestle India slumps on likely earnings loss of Rs 160 crore in June quarter

NEW DELHI: Nestle India Ltd closed the day at Rs 5,539.80, down 7.63%. The stock slipped over 7 per cent in intraday trade, after media reports suggested that the Swiss multinational's decision to withdraw Maggi from the Indian market could shave off around Rs 160 crore from its June quarter turnover.

The impact could be greater if consumers happen to reject Nestle's other products as well, TNN reported. As Nestle takes a hit on its financial numbers with Maggi off the shelves, consumers may shift to other brands like ITC's Yippee, Top Ramen noodles and HUL's Knorr, added the report.

The prepared dishes segment, of which Maggi noodles form the bulk, contribute approximately 30% to Nestle's annual revenues of around Rs 9,000 crore.

The Maggi instant noodles controversy has already cost investors in Nestle almost Rs 10,000 crore. The share price of the FMCG major has fallen nearly 15% since the controversy over excessive lead in the noodleS brand broke out.

Share price fell from Rs 7,039 on May 8 to Rs 6,036 on June 5, wiping out nearly Rs 10,000 crore from Nestle's market cap, ET reported.