Nestlé Q3 net profit up by 39.05%

Nestlé India Ltd has posted a net profit of Rs 527 million for the quarter ended September 30, 2001 as compared to Rs 379 million for the corresponding period last fiscal. Total Income has increased from Rs 4722 million in SQ 2000 to Rs 5361 million in the quarter ended September 30, 2001.

Out of the increase of net profit by 39.05% (11.60% increase) is due to a change in accounting policy i.e. due to implementation of accounting standard AS-22 in line with SEBI guidelines. The balance increase of 27.40% is mainly due to increased sales, lower commodity prices and improved asset rotation which have been partially offset by the costs associated with Water, Liquid milk/Chilled dairy businesses. The lower provision for contingencies and reduction in income tax rate also contributed to the increase in net profit.

Commenting on the performance of the company after the Board meeting, Nestlé India Chairman & Managing Director, Mr. Cairo M Donati stated " The continuing excellent performance of Nestlé India reflects the integrity of the Nestlé culture. The focus on consumer and the professionalism of our executives has sustained innovation and renovation within the company and their pragmatic attitude has ensured excellent top-line and impressive bottom-line contribution for Nestlé India. However despite these strengths, the uncertain and difficult domestic and international market environment coupled with the seasonality factors will impact our performance in the fourth quarter."