FMCG major Nestle India has reported 49.95 percent jump in net profit at Rs 395.03 crore for the second quarter ended June 30, helped by lower expenses.
According to a PTI report: The company, which follows January-December financial year, had posted a net profit of Rs 263.43 crore for the April-June quarter of 2017-18.
Total income during the quarter stood at Rs 2,758.63 crore. It was Rs 2,525.96 crore in April-June, 2017-18, Nestle said in a BSE filing.
The company said financial results for the reported quarter are not comparable as sales for the June quarter 2017 were reported gross of Excise Duty and net of Value Added Tax (VAT)/ Sales Tax. Excise duty was reported as a separate expense line item.
“Consequent to the introduction of GST with effect from July 1 2017, VAT/Sales Tax, Excise duty etc have been subsumed into GST and accordingly the same is not recognised as part of sales,” the company said.
“The market momentum continued to be favourable and…we have sustained our broad based volume growth across categories. There is an improvement in margins due to favourable cost of commodities and cost efficiency programmes.
“However, we are now witnessing headwinds in commodity prices,” Suresh Narayanan, Chairman and Managing Director, Nestle India was quoted by PTI as saying.
The company said its total sales and domestic sales increased 8.5 percent and 8 percent, respectively in the reported quarter.
“The growth rates are adversely impacted due to lower reported sales by the change in structure of indirect taxes and reduction in realisations to pass on the GST benefits.