{"id":17237,"date":"2024-02-08T15:42:50","date_gmt":"2024-02-08T10:12:50","guid":{"rendered":"https:\/\/univest.in\/blogs\/?p=17237"},"modified":"2024-02-08T15:42:50","modified_gmt":"2024-02-08T10:12:50","slug":"nestle-india-q4-net-profit-rises","status":"publish","type":"post","link":"https:\/\/univest.in\/blogs-2\/nestle-india-q4-net-profit-rises\/","title":{"rendered":"Nestle India Q4 Results Disappoints, Brokerages are not happy"},"content":{"rendered":"<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_65 counter-hierarchy ez-toc-counter ez-toc-grey ez-toc-container-direction\">\n<div class=\"ez-toc-title-container\">\n<p class=\"ez-toc-title \" >Table of Contents<\/p>\n<span class=\"ez-toc-title-toggle\"><a href=\"#\" class=\"ez-toc-pull-right ez-toc-btn ez-toc-btn-xs ez-toc-btn-default ez-toc-toggle\" aria-label=\"Toggle Table of Content\"><span class=\"ez-toc-js-icon-con\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #999;color:#999\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #999;color:#999\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/span><\/a><\/span><\/div>\n<nav><ul class='ez-toc-list ez-toc-list-level-1 ' ><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/univest.in\/blogs-2\/nestle-india-q4-net-profit-rises\/#Nestle_India_Q4_Results\" title=\"Nestle India Q4 Results\">Nestle India Q4 Results<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/univest.in\/blogs-2\/nestle-india-q4-net-profit-rises\/#What_are_the_reactions_of_brokers\" title=\"What are the reactions of brokers?\">What are the reactions of brokers?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-3\" href=\"https:\/\/univest.in\/blogs-2\/nestle-india-q4-net-profit-rises\/#Conclusion\" title=\"Conclusion\">Conclusion<\/a><\/li><\/ul><\/nav><\/div>\n<h3><span class=\"ez-toc-section\" id=\"Nestle_India_Q4_Results\"><\/span><strong>Nestle India Q4 Results<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p>Nestle India, one of the largest food and beverage companies in the country, recently reported its fourth-quarter financial results, which fell short of market expectations.<\/p>\n<p><em>Despite a 4.4% increase in net profit, which reached Rs 655.6 crore, the growth was lower than the estimated 11%. Furthermore, the revenue from operations also missed projections, rising only 8.05% to Rs 4,600 crore.<\/em><\/p>\n<h3><span class=\"ez-toc-section\" id=\"What_are_the_reactions_of_brokers\"><\/span><strong>What are the reactions of brokers?<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p>Brokerages had mixed reactions to the results. <a href=\"https:\/\/en.wikipedia.org\/wiki\/Jefferies_Group\" rel=\"nofollow noopener\" target=\"_blank\">Jefferies<\/a> maintained a &#8220;hold&#8221; rating with a target price of Rs 2,475, while praising the gross margin expansion but highlighting concerns about input costs.<\/p>\n<p><a href=\"https:\/\/univest.in\/stocks\/motilalofs\/motilal-oswal-financial-services-ltd-share-price-today\">Motilal Oswal<\/a> reiterated a &#8220;neutral&#8221; rating with a target price of Rs 2,400, acknowledging broad-based growth but finding valuations expensive. <a href=\"https:\/\/univest.in\/blogs\/morgan-stanley-has-rated-dlf-as-overweight\/\">Morgan Stanley<\/a> maintained an &#8220;underweight&#8221; rating with a target price of Rs 1,981, appreciating strong pricing and lower input costs but remaining cautious.<\/p>\n<p>Several key highlights emerged from <strong><a href=\"https:\/\/univest.in\/stocks\/nestleind\/nestle-india-ltd-share-price-today\">Nestle India<\/a><\/strong>\u00a0report. Domestic sales grew 8.9%, driven by pricing and mix adjustments, with e-commerce and out-of-home channels performing well.<\/p>\n<p>Gross margin reached a 12-quarter high of 58.6%, reflecting cost management efforts. Nestle also sold its Nestle Business Services unit for Rs 79.8 crore, aiming for global synergies and long-term benefits.<\/p>\n<h3><span class=\"ez-toc-section\" id=\"Conclusion\"><\/span><strong>Conclusion<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p>As we look ahead, it is important to note that <strong>Nestle India&#8217;s<\/strong> success will be heavily influenced by its ability to effectively manage the rising costs of raw materials, maintain pricing power in a highly competitive market, and expand its presence in untapped markets.<\/p>\n<p>The company&#8217;s <strong>&#8220;RURBAN&#8221;<\/strong> <strong>strategy,<\/strong> which emphasizes a dual focus on both rural and urban markets, has the potential to be a key driver of growth and success for the company.<\/p>\n<p>It is worth noting that Nestle India&#8217;s performance is of great interest to a wide range of stakeholders including investors, analysts, and consumers.<\/p>\n<p>The company&#8217;s track record of<em><strong> delivering high-quality products and maintaining a strong market position<\/strong><\/em> has made it a key player in the Indian market.<\/p>\n<p><em>As such, many are eagerly watching to see what the future holds for this important company.<\/em><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Nestle India Q4 Results Nestle India, one of the largest food and beverage companies in the country, recently reported its fourth-quarter financial results, which fell short of market expectations. Despite a 4.4% increase in net profit, which reached Rs 655.6 crore, the growth was lower than the estimated 11%. Furthermore, the revenue from operations also<\/p>\n","protected":false},"author":15,"featured_media":26919,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[842],"tags":[],"class_list":["post-17237","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-news"],"metadata":{"_last_editor_used_jetpack":["classic-editor"],"_edit_lock":["1707387035:13"],"_edit_last":["13"],"rank_math_internal_links_processed":["1"],"rank_math_seo_score":["79"],"rank_math_focus_keyword":["Nestle India"],"rank_math_primary_category":["842"],"_thumbnail_id":["26919"],"post_views_count":["651"],"rank_math_title":["Nestle India Q4 Net Profit Rises 4.3% to Rs 655.61 Crore"],"rank_math_description":[" Nestle India on Wednesday reported a net profit of \u20b9655.61 Cr for the quarter ended December 2023, registering a growth of 4.4% lower than the estimated 11%."],"rank_math_facebook_title":["Nestle India Q4 Net Profit Rises 4.3% to Rs 655.61 Crore"],"rank_math_analytic_object_id":["545"]},"jetpack_sharing_enabled":true,"jetpack_featured_media_url":"https:\/\/univest-blog.storage.googleapis.com\/blogs\/wp-content\/uploads\/2024\/10\/18181948\/posts-1-2.jpg","_links":{"self":[{"href":"https:\/\/univest.in\/blogs-2\/wp-json\/wp\/v2\/posts\/17237","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/univest.in\/blogs-2\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/univest.in\/blogs-2\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/univest.in\/blogs-2\/wp-json\/wp\/v2\/users\/15"}],"replies":[{"embeddable":true,"href":"https:\/\/univest.in\/blogs-2\/wp-json\/wp\/v2\/comments?post=17237"}],"version-history":[{"count":4,"href":"https:\/\/univest.in\/blogs-2\/wp-json\/wp\/v2\/posts\/17237\/revisions"}],"predecessor-version":[{"id":17242,"href":"https:\/\/univest.in\/blogs-2\/wp-json\/wp\/v2\/posts\/17237\/revisions\/17242"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/univest.in\/blogs-2\/wp-json\/wp\/v2\/media\/26919"}],"wp:attachment":[{"href":"https:\/\/univest.in\/blogs-2\/wp-json\/wp\/v2\/media?parent=17237"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/univest.in\/blogs-2\/wp-json\/wp\/v2\/categories?post=17237"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/univest.in\/blogs-2\/wp-json\/wp\/v2\/tags?post=17237"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}