New Delhi: Nestle India Ltd, the local entity of Swiss packaged food maker Nestle SA., on Thursday reported a 38.22% increase in net profit for the quarter ended 31 March 2018, backed by lower cost of raw materials and other expenses.

Net profit for the January-March quarter stood at Rs424.03 crore as against Rs306.76 crore reported in the year-ago quarter. Nestle India follows a January-December year for accounting.

Revenue from operations grew by 6.3% during the quarter ended 31 March 2018, backed by volume growth, to Rs2,757.24 crore from Rs2,591.94 crore in the corresponding year-ago quarter. Its revenue from domestic market grew by 6.26% and exports by 6.15% during the quarter under review.

Nestle India’s growth for the quarter, said its chairman and managing director Suresh Narayanan, is “backed by broad volume based growth across categories. This is in line with our strategy of broad based growth through increased penetration," Narayanan said in a statement.

According to the company, sales during the quarter were “adversely impacted due to lower reported sales by the change in structure of indirect taxes and reduction in realisations to pass on the goods and services tax (GST) benefits". On a comparable basis, domestic sales growth is ‘estimated’ at 13.4%, added Nestle India.

“We are committed to a healthier future, and in line with our vision to introduce products rooted in nutrition, health and wellness, we will be adding breakfast cereals to our existing portfolio this year. This business complements our current portfolio by combining our expertise in food and this category globally," Narayanan said.

On Thursday, Nestle India shares closed 1.16% down to Rs8,986.45 apiece while benchmark Sensex shed 0.21% to end the day at 35,246.27 points. The results were announced after the close of trading.

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