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Nestle is transferring Rs 837 Cr. from its general reserves to retained earnings; check details here

20 September 20232 mins read by Angel One
The company's net profit in the first quarter of FY24 experienced a remarkable upswing, surging by 36.87% to reach Rs 698.34 crore.
Nestle is transferring Rs 837 Cr. from its general reserves to retained earnings; check details here
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Nestle India has disclosed that the order, approved by the Honourable National Company Law Tribunal, New Delhi Bench, sanctioning the Scheme of Arrangement between the company and its shareholders, involving the transfer of the entire balance of Rs 8,374.3 million from the General Reserves to Retained Earnings.

Considering the company’s quarterly performance, on a standalone basis it reported a growth of 15.15% from Rs 4,045.69 crore registered in Q1FY23, recording total revenue of Rs 4,658.53 crore in Q1FY24. It has reported strong operating profit growth of 29.45%. Compared to the same quarter last year, the net profit for the first quarter of FY24 surged 36.87%, from Rs 510.24 crore to Rs 698.34 crore.

In the face of prevailing concerns regarding the performance of global FMCG giants, Chairman and Managing Director Suresh Narayanan conveyed in an interview the company’s optimistic outlook for a more prosperous Diwali season. He emphasized the company’s reliance on its core categories as a key driver for achieving robust growth.

Nestle India operates as a subsidiary of NESTLÉ S.A., headquartered in Switzerland. The company holds the distinction of being the world’s largest food and beverage company, boasting a portfolio of over 2,000 brands that span from globally recognised icons to beloved local favourites. The company’s reach extends to 191 countries across the globe.

It is a dynamic enterprise with eight of its manufacturing facilities and a substantial network of co-packers. It prides itself on delivering products to Indian consumers that adhere to global quality standards, thereby enriching the culinary experiences of people throughout the country.

The stock has experienced a robust 20% increase over the past half-year, currently trading at Rs 22,670 per share, with a 52-week high of Rs 23,390 per share on the BSE.

Keep a close eye on this stock for the upcoming sessions!

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. It is based on several secondary sources on the internet, and is subject to changes. Please consult an expert before making related decisions.

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