Nestle Q2 result preview: PAT likely to grow 32%; revenue to rise 15%

Nestle's profit after tax (PAT) is expected to grow 32 per cent to Rs 679 crore against Rs 515 crore registered a year ago.

nvestors should keep an eye on Nestle management's commentary on demand and margins.

FMCG major Nestle, which follows calendar-year financial reporting, is expected to post its June quarter numbers (Q2CY23) on Thursday, July 27. Ahead of the results, shares of Nestle India closed 0.12 per cent higher at Rs 22785.6 apiece on the BSE.

How is Nestle expected to perform in the first quarter?

Zee Business Research expects the company to post good results on the back of its distribution expansion.

The profit after tax (PAT) is expected to grow 32 per cent to Rs 679 crore against Rs 515 crore registered a year ago. The FMCG company is likely to report revenue of Rs 4,639 crore against Rs 4,037 crore year-on-year (YoY), up 15 per cent.

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Further, the earnings before interest, taxes, depreciation, and amortisation, or EBITDA, are expected to come in at Rs 1,030 crore against Rs 849 crore, up 21 per cent YoY. The company's margin is expected to be 22 per cent as compared to 21 per cent a year ago. The improvement in the margins can be attributed to a fall in palm and crude oil prices.

According to the research, rising milk prices are another positive for the company. The domestic business of Nestle is likely to grow by 17 per cent and exports are expected to rise by 8 per cent.

Investors should keep an eye on management's commentary on demand and margins.