Are Nestle India latest results good or bad?

Nestle India has reported its financial results for the quarter ending June 2025, which reflect notable challenges across various key performance metrics. The company's Profit Before Tax (PBT) adjusted for other income fell to Rs 883.79 crore, representing a decline compared to the average PBT from the previous four quarters. Similarly, Profit After Tax (PAT) decreased to Rs 646.59 crore, indicating a reduction in profitability.
The operating profit also showed a downward trend, with an operating profit of Rs 1,100.26 crore, marking the lowest figure recorded in the last five quarters. This decline is further illustrated by the operating profit margin, which fell to 21.59%. Additionally, Earnings per Share (EPS) decreased to Rs 6.71, suggesting a challenging environment for shareholders.

In terms of sales, the net sales for the quarter ended June 2025 experienced a decline of 6.86% compared to the previous quarter. The standalone net profit also reflected a significant reduction, with a decrease of 25.55%. The company's dividend payout ratio has reached its lowest point at 78.54%, continuing a downward trend observed over the past five years. Furthermore, cash and cash equivalents have diminished to Rs 95.59 crore, and the debtors turnover ratio has slowed, indicating potential challenges in liquidity and operational efficiency.

Overall, the financial results indicate that Nestle India has faced operational difficulties during this period, leading to an adjustment in its evaluation.