Nestlé India has recently experienced a significant drop in its share prices, plummeting by over 3% after the company reported a slight decline in net profits for the quarter ending September 2024. The net profit fell by 0.94% to ₹899.49 crore, compared to ₹908.08 crore in the same quarter the previous year. Despite the profit decline, the company’s revenue from product sales saw a marginal increase of 1.3%, reaching ₹5,074.76 crore.
The primary challenges contributing to this profit decrease include rising commodity prices and a softer demand for key brands. Consequently, Nestlé India’s market valuation has dropped significantly, shedding ₹7,959.11 crore and bringing its total valuation to ₹2,29,440.48 crore.
The company’s stock closed at ₹2,379.70 on the Bombay Stock Exchange, marking it as one of the largest laggards in the BSE Sensex. Analysts and investors are keeping a close eye on Nestlé’s strategies to mitigate these challenges, as the food and beverage sector continues to grapple with fluctuating market conditions.
