Baby food maker Nestle India, which is scheduled to the publish its March quarter earnings on Tuesday, will see a pressure on its topline due to the lockdown situation.
Edelweiss Securities estimates revenue, Ebitda and net profit to dip 5.8 percent, 21.9 percent and 15.4 per cent respectively year-on-year (i.e. YoY).
As the broker in a report said – “Export revenue growth is likely to decline by 20 per cent YoY. Raw material prices have seen inflationary pressure which will put pressure on gross margins (160 bps YoY). However operating leverage will lead to Ebitda margins compression of 430bps YoY” .
It pegs revenue of the company at around Rs 2,827.6 crore and profit at Rs 371.8 crore.
The shares of the company have been one of the outperformers of this year. Nestle The rises are up 20 percent year to date, against 23 percent drop in BSE Sensex. It commands a premium valuation on Dalal Street, trading at 87 times its earnings.
Emkay Research, a broker company, said the revenue decline will be driven by lower sales during the nationwide lockdown that was implemented to check fast spread of the corona virus in the country.