Nestle India profit jumps 26% on strong demand, shares rise

Nestle India posted ​a 26% increase in quarterly profit ‌on Tuesday, benefiting from strong demand for packaged foods, including KitKat chocolates and Maggi instant ​noodles.

Shares of the company rose 6.8% ​to 1,373.3 rupees after the results.

After ⁠a prolonged slowdown in consumption, demand for ​consumer packaged goods in India began picking up ​about four quarters ago, with easing inflation and tax cuts aiding the recovery.

Nestle India said revenue ​for the March quarter grew 23% ​to 67.48 billion rupees, marking its highest domestic ‌sales ⁠and its strongest growth in nearly a decade.

The Indian unit of Swiss food major Nestle also said net profit stood ​at 11.14 ​billion rupees ($119.12 ⁠million) for the fourth quarter ended March 31, compared to ​8.85 billion rupees a year earlier.

The ​company ⁠said it will focus on boosting capacity and grow sales volume without providing a specific ⁠timeline.