On Wednesday, Nestle India (NEST.NS) announced a higher-than-expected gain in third-quarter earnings, owing to price rises and a revival in demand for its chocolates and packaged goods in rural regions.
In the fiscal quarter ending September 30, the company’s earnings increased 8.3% to 6.68 billion Indian rupees ($81.1 million).
According to Refinitiv IBES data, analysts expected a profit of 6.57 billion rupees on average.
The fall in raw material costs, notably oil, is expected to boost profitability for Indian consumer goods manufacturers, whose margins have been squeezed by the Russia-Ukraine war-related rise in commodity prices.
Nestle stated in a statement, “We are seeing early signs of stability in the pricing of a few commodities, such as edible oils and packaging materials.”
In early trade, the company’s shares jumped 1.1% to 19,601 rupees after the KitKat chocolate manufacturer announced an interim dividend of 120 rupees per share.