The company’s revenue from operations rose 14 per cent on-year to Rs 3,476 crore in the reported quarter, which was also below analysts’ estimates.
During the quarter, the company’s domestic sales grew 13.7 per cent on-year suggesting that the company was not badly affected by the second wave during the quarter. Domestic and export sales achieved double digit growth largely driven by volume and product mix, Nestle India said.
“Our efforts to ensure last mile access were aided by e-commerce and in particular hyperlocal (quick commerce) channels, which grew by 147% in the first half of this year,” said Chairman and Managing Director Suresh Narayanan.
Nestle India said that during the quarter, its export revenues jumped 17.7 per cent.
In another important development, the board of the company decided to transfer its entire general reserve of Rs 837 crore to retained earnings from January 2022. The reserves transferred will be available to the company for use such as distribution among members of the company and shareholders.
“Given the company’s strong financial position and track record of cash generation, the funds represented by such accumulated general reserves is seen to be in excess of the company’s current and anticipated needs,” Nestle India said.
The company said that it has decided to transfer the general reserve to retained earnings to uphold good corporate governance.
Further, the company’s board has also approved the sale of 20 per cent stake in Sahyadri Agro due to change in business conditions.
Shares of Nestle India ended 1.2 per cent lower at Rs 18,000 on the National Stock Exchange.
