Nestle Q1 up 6.8% to Rs 307 crore

New Delhi: FMCG major Nestle India on Friday reported an increase of 6.76 percent in net profit to Rs 306.76 crore for the first quarter this year, driven by volume growth across products including Maggi noodles.

The company, which follows January-December period as financial year, had posted a net profit of Rs 287.32 crore for the March quarter of last fiscal.

Its net sales during the quarter under review were at Rs 2,575.74 crore, up 9.10 percent as against Rs 2,360.80 crore a year ago, Nestle said in a BSE filing.

Nestle India CMD Suresh Narayanan said: "Innovation and renovation, as also volume based growth, are core business strategies outlined by Nestle India almost 18 months back and I am pleased that this strategy is now playing an important role."

During the quarter, domestic sales moved up 9.74 percent to Rs 2,409.34 crore as against Rs 2,195.46 crore in the corresponding period a year earlier.

"Domestic Sales increased by 9.7 percent mainly due to increase in volumes across product groups, including rebuild of the Maggi noodles, supplemented by marginally better realisations mostly from carry over pricing," Nestle said.

However, its exports were almost flat at Rs 166.40 crore as against Rs 165.34 crore.

"The growth of 0.6 percent in exports was largely impacted by lower sales to Nepal and Bhutan," Nestle said.

Nestle's total expenses in the first quarter were up 12.81 percent at Rs 2,153.46 crore as against Rs 1,908.85 crore.

The company's stock settled at Rs 6,819.55, down 0.48 percent, on BSE.