Nestle India Q4 Results: Board declares dividend of ₹7 per share; Record date fixed on February 15

Nestle India on Wednesday declared an interim dividend of ₹7 per share while announcing its earnings for the quarter ended December 2023.

In a regulatory filing, Nestle India said that its board of directors has approved the declaration of a third interim dividend of ₹7 per equity share of the face value of Re 1 each for the Financial Year 2023-24.

The company has also fixed the Record Date for the dividend as February 15.

“Third Interim Dividend for the Financial Year 2023-24 will be paid on and from 5th March 2024 to those members whose names appear in the Register of Members of the Company and as beneficial owners in the Depositories, as on the Record Date fixed for the purpose i.e., 15th February 2024.

Meanwhile, from the Record Date of January 5, the equity shares of the company have been sub-divided, such that 1 (one) equity share having face value of ₹10 each, fully paid-up, stands sub-divided into 10 (ten) equity shares having face value of Re 1 each, fully paid-up, ranking pari-passu in all respects.

Read here: Nestle India Q4 Results: Net profit rises 4.4% on year to ₹655.6 crore, interim dividend declared

Nestle India Q4 Results

Nestle India’s net profit in Q4CY23 rose 4.4% to ₹655.6 crore from ₹628.1 crore in Q4CY22. Nestle India follows the January-to-December financial year.

The Maggi noodle maker's revenue from operations for the December quarter increased 8.1% to ₹4,600 crore from ₹4,256.8 crore, YoY. Total sales growth during the quarter was at 8.3%, while domestic sales growth was at 8.9%.

Earnings before interest, tax, depreciation and amortisation (EBITDA) rose 10.2% to ₹1,077 crore from ₹976.9 crore, while EBITDA margins rose 50 bps to 23.4% from 22.9%, YoY.

Nestle's NBS Division Slump Sale

Nestle India also announced that its board has approved the slump sale of its Nestlé Business Services (NBS) Division to Purina PetCare India, a 100% subsidiary of Nestlé S.A., for an aggregate consideration of ₹79.8 crore.

“The said consideration is at an arm’s length basis and would be adjusted for net working capital transferred by the Company as on 30th June 2024. The transaction will be effective from 1st July 2024, subject to customary closing conditions,” Nestle India said.

Established in 2006, NBS started as a Shared Service Centre in India. At present, the NBS Division provides captive services to Nestlé across four areas: Order to Cash, Source to Pay, Record to Report, and Hire to Retire.

At 1:15 pm, Nestle India shares were trading 0.96% higher at ₹2,481.55 apiece on the BSE.

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