Nestle India FY 2005 net rises 23 per cent

Nestle India has reported a net profit of Rs309.57 crore, or Rs32.11 per share, for the financial year ended December 2005 as compared to Rs251.92 crore, or Rs26.13 per share, for 2004, an increase of 22.88 per cent. Total revenues for the year increased to Rs2,500.64 crore as against Rs2,242.03 crore, a growth of 11.54 per cent.

The company was helped by a 64 per cent increase in other income to Rs23.74 crore from Rs14.45 crore during the previous year. The rise in other income was mostly on account of reversal of earlier provisions for doubtful debts. During the year, Nestle also realised Rs2.64 crore in extraordinary income by reversing some of the earlier provisions for loss in value of fixed assets.

Adjusted for the rise in other income and extraordinary income, Nestle''s profit for the full year 2005 has increased by 18.15 per cent as compared to the previous year.

Operating profits as a percentage of net sales increased to 22.04 per cent for the year 2005 as compared to 20.79 per cent for the previous year.

For the quarter ended December 2005, the company has reported a net profit of Rs74.16 crore, or Rs7.69 per share, as against Rs76.5 crore, or Rs7.93 per share, for the previous year quarter. Total revenues for the quarter increased to Rs628.54 crore from Rs576.86 crore during the pervious year quarter.

Nestle had reported a net profit of Rs74.59 crore, or Rs7.74 per share, during the quarter ended September 2005 on total revenues of Rs630.48 crore.

Nestle is trading at Rs1,136 (down 1 per cent) on the BSE at 12.42 PM today.