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Nestle India Limited Q2CY21 Result - Nestle India Analyst Report | Invest Yadnya

Nestle India Limited Q2CY21 Result

Published on 02 August 2021 Views 12 Comments 0

Nestle India Limited has announced its Quarterly Result for the quarter ended 30th June 2021 on 28th July 2021. The Company follows the calendar year, hence the period April-June is the second quarter of the company. Here is the detailed analysis of the company’s result for Q2CY21.

Introduction:

The Six-Point Detailed Analysis of Nestle India  dividend yield of its Q2 CY21 results will be discussed in the following manner:

Nestle India: 6-Point Analysis

Nestle India: 6-Point Analysis

1) Q1FY22 Result:

  • The Domestic Sales of the company have gone up by 13.7% YoY from Rs. 2,908 Cr. in Q2CY20 to Rs. 3,305 Cr. in Q2CY21. But Quarter-on-Quarter, the domestic sales of the Nestle products has decreased by 4% from Rs. 3,442 Cr. in Q1CY21.
  • While the Export Sales of Nestle India share price has increased by 17.7% in Q2CY21 to Rs. 157 Cr. from Rs. 134 Cr. in Q2CY20. The Export Sales of Nestle India market  share value  was Rs. 158 Cr. in Q1CY21.
  • Summing up the domestic sales, Export Sales, and Other Operating Income, the Revenue from Operations of Nestle India analysis and Nestle India dividend has increased by 14% YoY from Rs. 3,051 Cr. in the quarter ended 30th June 2020 to Rs. 3,477 Cr. in the quarter ended 30th June 2021. Sequentially, according to the Nestle India annual report,  the revenue from operations of theNestle share value has gone down by 3.7% QoQ from Rs. 3,611 Cr. in the quarter ended 31st March 2021.
  • The EBITDA of Nestle group share price and Nestle share growth stood at Rs. 848 Cr. in Q2CY21 against Rs. 748 Cr. in Q2CY20, up by 14% YoY and down by 3.7% QoQ from Rs. 3,611 Cr. in Q1CY21 of Nestle share market price.
  • According to Nestle India annual turnover,The EBITDA  margin of the Nestle share price value research, Nestle share price has contracted by 10 bps YoY as of Nestle India share price history and 160 bps QoQ from 24.5% and 26% respectively to 24.4% in Q2CY21.
  • The Profit Before Tax (PBT) of the company as of Nestle India analyst report has gone up by 12% YoY in Q2CY21 to Rs. 730.5 Cr. against Rs. 652 Cr. in Q2CY20. Sequentially, the PBT is down by 10% from Rs. 812 Cr. in Q1CY21.
  • The Net Profit of the company has also increased by 10.7% from Rs. 486.6 Cr. in Q2CY20 to Rs. 538.6 Cr. in Q2CY21. While the same has gone down by 10.6% QoQ from Rs. 602 Cr. in Q1CY21.
  • The Net Profit Margin of the company has contracted by 50 bps YoY to 15.5% in Q2CY21.
Nestle India Limited- Q2 CY21 Result

Nestle India Limited- Q2 CY21 Result

2) 6MCY21 Performance:

  • In the six months of the Current Year 2021, the Domestic Sales has increased by 11.85% from Rs. 6,032 Cr. in H1CY20 to Rs. 6,747 Cr. in H1CY21.

  • The Export Sales of the company has remained flat YoY from Rs. 315 Cr. in H1CY20 to Rs. 316 Cr. in H1CY21.

  • The Revenue from Operations of the company has increased by 11.2% to Rs. 7,088 Cr. in 6M CY21 against Rs. 6,376 Cr. in 6MCY20.

  • On 6 Month basis, the EBITDA of the company has increased by 15.4% from Rs. 1,541 Cr. in H1CY20 to Rs. 1,779 Cr. in H1CY21.

  • On a 6 month basis, the EBITDA margin of the company has also expanded by 90 bps from 24.2% in the half-year ended 30th June 2020 to 25.1% in the half-year ended 30th June 2021.

  • For 6 month period, the Profit Before Tax (PBT) of the company has also witnessed a growth of 13.7% from Rs. 1,356 Cr. in H1CY20 to Rs. 1,542 Cr. in H1CY21.

  • For the same period, the Net Profit of the company has also reported a decent growth of 12.7% from Rs. 1,012 Cr. in H1CY20 to Rs. 1,141 Cr. in H1CY21.

  • The Net Profit Margin of the company stood at 16.1% in H1C21

Nestle India Limited- H1 CY21 Performance

Nestle India Limited- H1 CY21 Performance

3) Revenue Mix:

  • Domestic and Export Sales growth was driven by volume & mix in double digits.

  • Plans to increase rural India focus and expand the footprint to maintain sustainable growth.

  • The company is effectively grabbing e-commerce growth opportunities which are around 6.4% of the domestic sales.

  • As of Q2CY21, the domestic sales contribute around 95% of the total revenue of the company, and only 5% of the revenue of the company comes from Export Sales.

Nestle India Limited- Revenue Mix

Nestle India Limited- Revenue Mix

4) Revenue & EBITDA/EBITDA Margin Trend:

i) Revenue Trend:

  • Total Sales and Domestic Sales for the quarter increased by 13.8% and 13.7% respectively, on a base impacted by COVID 19 induced lockdown with production disruptions across factories.

  • Domestic Sales growth was driven by volume & mix in double-digit. Export Sales increased by 17.7% due to the timing of exports to affiliates.

Nestle India Limited- Revenue Trend

Nestle India Limited- Revenue Trend

ii) EBITDA/EBITDA Margin Trend:

Nestle India Limited- EBITDA/EBITDA Margin Trend

Nestle India Limited- EBITDA/EBITDA Margin Trend

5) Business Highlights:

i) Q2 CY21 Highlights:

  • Domestic & Export Sales achieved double-digit growth largely driven by volume & mix.

  • Key products MAGGI Noodles, KITKAT, Nestlé MUNCH, MAGGI Sauces, MAGGI MASALAA-E-MAGIC posted strong double-digit growth.

  • Strong performance in E-Commerce channels, grew by 105%, and contributed 6.4% of domestic sales.

  • In recent times, commodity prices have been rising across oils and packaging materials.

ii) H1 CY21 Highlights:

  • Hyperlocal (quick commerce) channels grew by 147%.

  • Contribution of innovations to domestic sales growth, now at 4.9%.

  • Invested about INR 25 Crore in a range of sustainability projects.

  • As of now, the company has invested around Rs. 1,000 Cr. (INR 10 billion) of the total commitment of Rs. 2,600 Cr. (INR 26 billion) over the period for 3-4 years.

6) Stock Performance:

  • Nestle India Share has underperformed the benchmark Nifty 50 Index in the last one year by a huge margin.

  • For a period of the last 1-year, Nestle India generated returns of only 8.42% while the benchmark index has yielded returns of more than 42%.

Nestle India Limited- Stock Performance

Nestle India Limited- Stock Performance

7) Valuations:

  • The stock is currently trading at a PE ratio of 77.74 following its 1-year, 3-year, and 5-year Median PE.

Nestle India

PE Ratio (30/07/2021)

77.74

1 Year Median PE

77.88

3 Year Median PE

74.83

5 Year Median PE

68.28

Tata Coffee Limited- Valuations

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