NEW DELHI: Nestle Indias December quarter profit growth may exceed 20 per cent while it sales may grow in double-digit sales, in line with the management guidance, said analysts.Commentary on recovery in trade channels and rural demand will be keenly watched.The company will report its fourth quarter results later in the day.Motilal Oswal Securities expects the FMCG major to report a 33.5 per cent rise in net profit at Rs 541 crore compared with Rs 404 crore in the same quarter last year.
It sees sales rising 12.7 per cent to Rs 3,265.10 crore from Rs 2,897.30 crore on a YoY basis.
HDFC Securities said that aggressive marketing and new products have aided sales growth during the December quarter.IIFL Securities expects a 24.2 per cent growth in profit at Rs 475 crore on a 9.2 per cent rise in sales at Rs 3,142 crore.
This brokerage expects the favourable base in other expenses and impairment charges to boost Ebitda growth to 17.4 per cent compared with 3.6 per cent in the previous quarter.We forecast sales growth of 9.2 per cent, with domestic sales growing 10.5 per cent (similar to previous quarter) and exports continuing to decline.
Gross margin contraction at 118bps is expected to moderate, from 214 bps contraction reported in the previous quarter, on a slightly favourable base, it said.At 9.28 am, the scrip was trading 0.62 per cent higher at Rs 16,390.25 on BSE.