Nestle India shares edged higher by 0.5 per cent at opening bell after the Maggi, dairy products and coffee maker, post market hours on Tuesday, reported that its net profit in quarter ended June 30, 2020 rose 11.14 per cent to Rs 486.6 crore from Rs 437.79 crore during the same quarter last year. At 9:25am, the stock was trading at Rs 17,156, higher by 42 points or 0.2 per cent, on the BSE.
The company's revenues from sale of products advanced 2 per cent annually to Rs 3,041.45 crore.
"Sales were adversely impacted due to the COVID-19 induced lockdown and this led to production disruption across factories. Demand in Out of Home channel was severely reduced," Nestle India said in a statement.
On an average, the factories were operating at 75 per cent of capacity during the quarter and in the quarter, the company incurred Rs 28.6 crore of incremental costs specifically related to COVID 19, which are part of the results, Nestle India added.
The BSE Sensex was trading at 38,558, higher by 68 points or 0.1 per cent and the NSE Nifty was at 11,328.55, up 28 point or 0.2 per cent at the time.