Shares of Nestle India slipped 1.12 per cent in an otherwise upbeat market after the company’s net profit declined by 1.2 per cent year-on-year (YoY) to Rs 594.7 crore in the March quarter (Q1CY21). The company had posted a net profit of Rs Rs 602.25 crore in the year-ago quarter.

The FMCG major, however, registered a near 10 per cent growth YoY in total income to Rs 4,002.14 crore from Rs 3,640.47 crore. While the domestic sales were primarily driven by volume growth and sales mix, exports took a hit as they declined by 1 per cent YoY due to changes in product mix. The total sales (Rs 3,950.9 crore) and domestic sales (Rs 3,794.2 crore) increased by 9.7 per cent and 10.2 per cent, respectively, in a year.

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Cost of input cost materials dampened the profit from operations, which declined by 0.9 per cent YoY to Rs 832.45 crore.

Operating margin lowered by 200bps for 1QCY22 compared to the same quarter last year due to higher commodity prices, particularly edible oil and packaging materials, partly offset by better realisations.