BQ Prime’s special research section collates quality and in-depth equity and economy research reports from across India’s top brokerages, asset managers and research agencies. These reports offer BQ Prime’s subscribers an opportunity to expand their understanding of companies, sectors and the economy.
Nestle India Ltd.’s Q2 CY22 revenue surprised us positively while margins took a bigger hit than we had expected. Domestic sales picked up pace in Q2 CY22 with the topline growing by 16.4% YoY to Rs 38.5 billion, ahead of our estimate (three-year compound annual growth rate of 10.7%).
Growth was broad-based, primarily driven by pricing, but three-year CAGR in volume stood at a healthy ~6%. Exports (~4% of sales) stood flat YoY at Rs 1.6 billion.
Through project rurban, Nestle India had embarked on a journey to enhance its distribution in semi-urban and rural areas.
This is getting reflected in the H1 CY22 performance as the company has seen strong momentum in mega cities and metros, besides also witnessing strong acceleration across smaller town classes. It also saw a smart uptick in sales in rural markets this quarter.
Click on the attachment to read the full report:
This report is authored by an external party. BQ Prime does not vouch for the accuracy of its contents nor is responsible for them in any way. The contents of this section do not constitute investment advice. For that you must always consult an expert based on your individual needs. The views expressed in the report are that of the author entity and do not represent the views of BQ Prime.
Users have no license to copy, modify, or distribute the content without permission of the Original Owner.
Image and article originally from www.bqprime.com. Read the original article here.