Nestle India Q2 net profit up 15%

Total income of the company rose to Rs 1,997.87 crore for second quarter ended June 30,as compared to Rs 1,771.03 crore in the same period of previous financial year.

Nestle India Chairman and Managing Director Antonio Helio Waszyk said: “As expected,2012 is proving to be a very challenging year ¿ inflation persists; uncertain monsoon; economic volatility.

“We remain cautious and are focusing even more on execution of our strategy: deeper and wider distribution,manufacturing capacity expansion,waste reduction via our Nestle continuous excellence,brand building and continuous product innovation.”

The company’s board,which met today,also approved first interim dividend for 2012 of Rs 18 per equity share amounting to Rs 173.6 crore,which will be paid on and from August 13,2012.

During the quarter,the company said it further drew USD 35 million from Nestle SA for five years under the ECB approval from the Reserve Bank of India.

“The total amount outstanding as on June 30,2012 was USD 192 million (Rs 1,079 crore). With the rupee depreciating by 16.7 per cent during the loan period upto June 2012,the cumulative borrowing cost has gone up to 29.9 per cent on an annualised basis,” the company said.

Shares of Nestle India closed at Rs 4,431 on the BSE,up 0.05 per cent from its previous close.