Nestle India reported a 20% revenue rise to 67.88 billion rupees for the September quarter, but shares fell 7.5% amid inflation worries. Chairman Manish Tiwary said, "Rising inflation, particularly food inflation, is a reality." The company now faces a challenging environment as higher commodity costs continue to pressure their business margins.
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"Rising inflation, particularly food inflation, is a reality," Chairman and Managing Director Manish Tiwary said in a statement, citing "a challenging environment" due to higher commodity costs.
Shares fell 7.5% after the results and management's comments.
Indian consumer goods makers have faced mounting input cost pressures, especially for packaging, edible oils and agricultural commodities, although consumption tax cuts and targeted price increases have helped sales growth.
Revenue from operations rose 20% to 67.88 billion rupees in the September quarter.
($1 = 95.0625 Indian rupees)
Reporting by Surbhi Misra in Bengaluru and Praveen Paramasivam in Chennai; Editing by Subhranshu Sahu and Sherry Jacob-Phillips