Bengaluru: Nestle India Ltd, the local unit of the world’s biggest food company, on Friday reported a 23.5% increase in net profit for the quarter ended March, indicating a gradual recovery in sales volumes at the maker of Maggi noodles and Nescafe instant coffee.

Net profit rose to 320.28 crore from 259.16 crore in the year-ago period. Net sales increased 8.4% to 2,506.8 crore from 2,313 crore. Local sales grew 7.6%, helped by better price realizations and volume growth in some product categories.

Revenue from exports to affiliates bolstered the company’s profit, increasing 19.2%, contributed largely by shipments of milk and nutrition products to Bangladesh and West Asia.

“We have maintained steady growth with healthy profitability during the quarter," said Etienne Benet, managing director at the Gurgaon-based company. “Our business is evolving well, with emphasis on balanced nutrition and active lifestyle in our communication, and products like Maggi Masala-ae-Magic masala mix...are scaling up as per expectations."

Lower commodity prices this year were offset by raw material purchases made by the company at higher prices.

Shares of Nestle India rose 3.05% to 7,038.00, while the benchmark Sensex gained 0.43% to 27,324.00 points.

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