Nestlé India Likely to Report Dip in Q4 Profit Amid Higher Costs
Nestlé India is expected to post a 9% year-on-year decline in net profit for the January–March quarter of FY24, with analysts estimating profit at around ₹770 crore. The fall is attributed primarily to increased input costs and a higher base from the previous year.
Revenue for the quarter is predicted to grow by 6.8% year-on-year to approximately ₹4,943 crore, supported by consistent demand across categories, particularly in beverages and out-of-home consumption segments. Price-led growth is expected to have played a key role in driving sales, while volume growth may have remained in the low-single digits, impacted by rural softness and inflationary pressures.
Operating margin is projected to decline to around 21.5%, down from 23.6% in Q4FY23, due to elevated raw material and packaging costs. Input cost inflation, particularly in key commodities like milk and coffee, has continued to weigh on margins. Additionally, increased A&P spend and freight expenses are likely to have further pressured operating profitability.
Analysts suggest that Nestlé’s out-of-home business and premium offerings have remained strong, helping offset some of the challenges in rural and value-sensitive categories. The company’s innovation pipeline and recent product launches, particularly in beverages and confectionery, are seen as ongoing growth levers, though the full impact of these may be more visible in the coming quarters.
Nestlé India’s board is scheduled to meet on April 25 to approve the Q4 and full-year FY24 results. The board will also consider declaring a final dividend, as part of its quarterly shareholder return strategy.
As Nestlé continues to navigate cost pressures and evolving consumer dynamics, industry observers will be watching for management commentary on rural recovery, commodity cost outlook, and volume trajectory in FY25. The company’s performance remains closely watched as a bellwether for broader staples sector trends in India’s FMCG landscape.