FMCG major Nestle India will announce its earnings for the third quarter of the calender year 2019. It will be the first earnings announcement after its inclusion into Nifty. The earnings of the company are expected to be better than its peers.
Here's what to expect from the company today:
- Focus on the urban market has kept Nestle immune to rural slowdown.
- The expectation is of 9 percent revenue growth, Rs 3200 crore on the topline.
- EBITDA is likely to grow at 6 percent at Rs 786 crore, which could lead to margin compression of 70 basis points.
- EBITDA margins compression of 70 bps would be much lower than gross margin correction on 150-160 bps because of the increase in key input prices over the last few quarters.
- Net profit is likely to jump by 22.5 percent on lowered corporate taxes and the lower effective tax rate.
- Domestic revenue growth is expected between 11-12 percent.