Nestle India Q2 results: Profit declines nearly 9% on rising raw material costs

Nestle India's second-quarter profit fell nearly 9 per cent on Thursday, as the packaged food maker grappled with higher raw material prices.

The Indian arm of Swiss food major Nestle reported profit before exceptional items and tax of ₹1,021 crore ($121.51 million) for the second quarter ended Sept. 30, compared with ₹1,116 crore a year earlier.

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Over the last few years, Nestle India and other consumer goods makers have raised the prices of their chocolates and instant coffee to counter the surge in the cost of raw materials, including cocoa and coffee.

Overall expenses increased 3.4 per cent to ₹4,090 crore in the quarter.

Nestle India, whose products range from Maggi instant noodles to KitKat chocolates and Nescafe beverages, said revenue increased 1.3 per cent to ₹5,104 crore during the reported quarter.