The company is also expected to report a strong 8.2 per cent on-year growth in revenues in the quarter to Rs 3,598.1 crore, an analysts’ poll showed. Nestle India considers January-December as its financial year.
Nestle India will report its first quarter earnings on Tuesday.
The company’s strong topline growth will be largely due to the broad-based growth expected in the domestic market despite the handicap of a strong quarter in a year ago. Brokerage firm Axis Securities expects the company’s domestic revenues to grow 9 per cent led by 7 per cent rise in volumes and 2 per cent increase in prices.
The export business is expected to see a steady performance as brokerage firm Kotak Institutional Equities expects 6 per cent year-on-year growth for the company.
Despite the headwinds faced by FMCG companies during the quarter due to rise in raw material prices, Kotak Equities believes that the company’s gross margins could expand 200 basis points on a year-on-year basis due to price hikes taken in the quarter.
Operating performance of the company is also likely to be stellar as analysts pencil in a 11-13 per cent year-on-year growth in operating profit in the reported quarter.
Shares of Nestle India ended 1.2 per cent lower at Rs. 17,051.1 on Monday on the National Stock Exchange.
