The big positive for Nestle in the March 2020 quarter was the double digit growth in revenues in a tough consumption environment. Net profits for the March quarter were higher by 13.2% at Rs.525 crore with the growth in profits largely driven by lower corporate taxes. It may be recollected that the FM had cut corporate tax rates from 30% to 22% IN September 2019 and companies like Nestle were the big beneficiaries. The bigger positive takeaway was that revenues were up by 10.7% at Rs.3325 crore. Both net profits and revenues were higher than analyst estimates. Cost pressures ensured that the operating profit margins (OPM) shrank by 130 bps to 23.8%. The costs took a sharp hit on higher cost of dairy products; especially milk. However, it must be mentioned that Nestle is one of the few FMCG companies to sustain double digit sales growth.