Nestle India's June 2025 Results Highlight Declining Profitability and Operational Challenges

Nestle India has recently reported its financial results for the quarter ending June 2025, revealing notable challenges within its performance metrics. The company's score has experienced a revision, reflecting a shift in evaluation over the past three months.
Key financial indicators show a decline in Profit Before Tax less Other Income (PBT), which stood at Rs 883.79 crore, marking a significant drop compared to the average of the previous four quarters. Similarly, Profit After Tax (PAT) has also seen a reduction, recorded at Rs 646.59 crore, indicating a downward trend in profitability.

The Dividend Payout Ratio has reached its lowest point at 78.54%, suggesting a decrease in the proportion of profits distributed as dividends over the past five years. Additionally, Operating Profit and Operating Profit Margin have both hit their lowest levels in the last five quarters, pointing to challenges in operational efficiency.

Earnings per Share (EPS) have also declined, now at Rs 6.71, reflecting reduced earnings for shareholders. Furthermore, cash and cash equivalents are at their lowest in the last six half-yearly periods, indicating a deterioration in short-term liquidity. The Debtors Turnover Ratio has slowed, suggesting a longer time frame for settling debts.

In light of these developments, Nestle India has undergone an adjustment in its evaluation.

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