Nestle India Ltd Share Price – NSE /  BSE

FMCG, Mid Cap

The benchmark indices continued to trade with significant losses in mid-afternoon trade. The Nifty slipped below the 24,800 level. Metal shares extended losses for the fourth consecutive trading session.

At 14:30 IST, the barometer index, the S&P BSE Sensex, tumbled 495.46 points or 0.61% to 81,008.24. The Nifty 50 index slipped 209.60 points or 0.84% to 24,761.70.

The broader market underperformed the frontline indices. The S&P BSE Mid-Cap index fell 1.41% and the S&P BSE Small-Cap index declined 1.14%.

The market breadth was weak. On the BSE, 1,225 shares rose and 2,670 shares fell. A total of 116 shares were unchanged.

Economy:

The Union Cabinet has approved an additional installment of Dearness Allowance (DA) to Central Government employees and Dearness Relief (DR) to pensioners w.e.f. 1 July 2024 representing an increase of 3% over the existing rate of 50% of the basic pay/pension, to compensate against price rise. This increase is in accordance with the accepted formula, which is based on the recommendations of the 7th Central Pay Commission. The combined impact on the exchequer on account of both DA and DR would be Rs.9,448.35 crore per annum. This will benefit about 49.18 lakh central government employees and 64.89 lakh pensioners.

Buzzing Index:

The Nifty Metal index fell 1.54% to 9,591.90. The index declined 3.43% in the four consecutive trading sessions.

Jindal Steel & Power (down 4.34%), NMDC (down 3.85%), Adani Enterprises (down 2.78%), Vedanta (down 2.53%), JSW Steel (down 1.91%), Ratnamani Metals & Tubes (down 1.81%), Tata Steel (down 1.74%), Steel Authority of India (down 1.48%), Hindustan Copper (down 1.35%) and Hindustan Zinc (down 1%) edged lower.

On the other hand, National Aluminium Company (up 4.39%) ,Welspun Corp (up 0.61%) and Hindalco Industries (up 0.14%) edged higher.

Numbers to Track:

The yield on India's 10-year benchmark federal paper advanced 1.77% to 6.893 as compared with previous close 6.885.

In the foreign exchange market, the rupee edged lower against the dollar. The partially convertible rupee was hovering at 84.0550, compared with its close of 84.0275 during the previous trading session.

MCX Gold futures for 5 December 2024 settlement rose 0.22% to Rs 76,834.

The US Dollar index (DXY), which tracks the greenback's value against a basket of currencies, was up 0.04% to 103.63.

The United States 10-year bond yield gained 0.70% to 4.044.

In the commodities market, Brent crude for November 2024 settlement added 26 cents or 0.35% to $74.48 a barrel.

Stocks in spotlight:

Nestle India slipped 3.37%. The FMCG major's standalone net profit rose 8.62% to Rs 986.36 crore on 1.33% increase in revenue from operations to Rs 5,104 crore in Q2 FY25 over Q2 FY24.

Larsen & Toubro added 1.16% after company said that its hydrocarbon business (L&T Energy Hydrocarbon) has secured a 'significant' order under its AdVENT Business Vertical from a Government of India (GoI) undertaking. As per L&T's internal classification, the value of the aforementioned contract lies between Rs 1,000 crore and Rs 2,500 crore.

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Net profit of Nestle India rose 8.62% to Rs 986.36 crore in the quarter ended September 2024 as against Rs 908.08 crore during the previous quarter ended September 2023. Sales rose 1.30% to Rs 5074.76 crore in the quarter ended September 2024 as against Rs 5009.52 crore during the previous quarter ended September 2023.

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Total sales stood at Rs 5,074.76 crore in September 2024 quarter, up 1.30% from Rs 5,009.52 crore recorded in the same period a year ago.

During Q2 FY25, domestic sales grew by 1.23% YoY to Rs 4,883.14 crore, while export sales gained 3.13% YoY to Rs 191.62 crore.

Profit before tax (PBT) increased by 7.33% YoY to Rs 1,311.6 crore in the quarter ended 30 September 2024.

On half year basis, the company’s net profit increased 7.88% to Rs 1,732.96 crore on 2.3% rise in revenue to Rs 9,917.95 crore in H1 FY25 over H1 FY24.

The company said that it continued to accelerate growth by almost 38%, primarily driven by quick commerce and fueled by brands such as KITKAT, NESCAFÉ, MAGGI and MILKMAID. Growth was supported by premiumization, new user acquisition, festive participation and targeted digital communications, it added.

Suresh Narayanan, chairman and managing director, Nestle India, commented on the results, “Despite a challenging external environment characterized by muted consumer demand and high commodity prices, particularly for coffee and cocoa, we remained resilient in our pursuit of growth. This quarter, five of our top twelve brands achieved double-digit growth. While some key brands faced challenges due to softer consumer demand, we have robust action plans in place to address this. Notably, 65% of our top twelve brands, including MAGGI noodles, showed positive volume growth in the past nine months.

I am happy to inform you that over the past eight years, we have recalibrated and rejuvenated our product portfolio by launching over 145 new products contributing to approximately 7% of sales. Eight new projects are now in the pipeline.

Nestlé has successfully achieved its goal of introducing CERELAC variants with no refined sugar, a project initiated three years ago. The expanded CERELAC range in India will now include 21 variants, 14 of which will have no refined sugar. Seven of these no-refined-sugar variants will be available by the end of November 2024, with the remainder to follow in the coming weeks.

E-commerce delivered high double-digit growth, which was the highest in the last seven quarters contributing to 8.3% of domestic sales. The Out-of-Home business is also experiencing strong double-digit growth, offering a comprehensive portfolio that includes hot and cold vending solutions, coffee applications, and a wide range of culinary products.”

Meanwhile, the company appointed Manish Tiwary as non-retiring director and MD (key managerial personnel) of Nestlé India with effect from 1 August 2025 for a term of five consecutive years based on the recommendation of its nomination and remuneration committee, subject to approval of the shareholders. Tiwary will be succeeding Suresh Narayanan, who will retire on 31 July 2025.

Manish Tiwary is an experienced business executive with nearly three decades in large-scale operations and strategic initiatives within the e-commerce and consumer goods sectors. He currently serves as the special project manager for Zone AOA at Nestlé in Switzerland.

Previously, Tiwary was the country manager for Amazon India for over eight years, following a twenty-year tenure at Unilever in various roles across sales, marketing, and general management in India, the Gulf, and North Africa. He holds a B.Tech in Computer Science and an MBA from the Indian Institute of Management, Bangalore.

Nestlé is the world's largest food and beverage company. It manufactures internationally famous brand names such as Nescafé, Maggi, Milkybar, Kit Kat, Bar-One, Milkmaid and Nestea.

Shares of Nestle India declined 3.50% to currently trade at Rs 2,376 on the BSE.

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The Board of Nestle India at its meeting held on 17 October 2024 has approved the appointment of Manish Tiwary as “Non-retiring Director” and “Managing Director” (Key Managerial Personnel) of the Company w.e.f. 1 August 2025 for a term of five consecutive years, subject to approval of the shareholders.

To ensure a smooth transition due to Suresh Narayanan's retirement as Chairman and Managing Director of the Company on 31 July 2025, the Board of Directors has decided that Manish Tiwary will commence his role at Nestlé India as Managing Director (Designate) starting 1 February 2025, taking on full responsibilities as Managing Director w.e.f. 1 August 2025.

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