Nestle India is set to declare its December-quarter results on Thursday. The stock has been a star in the last 12 months. The company has posted double-digit growth in the last 11 quarters and it is expected to be a good set of numbers this quarter as well. Here are the key expectations:
- The street expects the company to post 10.5 percent growth in its revenue at Rs 3,200 crore. The company is relatively immune to the slowdown that we are seeing in the rural segment because that accounts for only 25 percent of its overall revenue.
- 19 percent growth is expected in the EBITDA at Rs 732 crore. This would mean a net profit jump of a lot more given the fact that there would be that additional booster coming in from lower tax expenses.
- The net profit is expected to jump by 40 percent, a little lower than Rs 500.
- Domestic business grows in double-digit is expected, the exports business, which is a very small part of their business, will see a marginal growth.
- Despite lower gross margins and higher cost of inputs, the company’s EBITDA margins are likely to improve.