The overall growth has been pricing-led with material cost inflation eating into the company’s profitability. There has been a 24% jump in raw material costs and a 20% increase in other expenses over the same quarter a year earlier. The management, in the company’s earnings call, mentioned 2022 inflation being five times the past trend.
Nestle India shares drop 2% after Q4 results. Buy, sell or hold?
The company has also informed the exchanges about changing the financial year from “1st January – 31st December” cycle to “1st April – 31st March”