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Nestle India Net Plunges 60%, Missing Estimates, After Maggi Ban

  • Noodle sales may restart soon after ban overturned in court
  • Maggi noodles haven't been sold in India since early June

Nestle SA’s Indian unit reported a 60 percent drop in third-quarter profit, much worse than analysts expected, as a government ban on sales of Maggi noodles weighed on the company.

Net income was 1.24 billion rupees ($19 million) in the three months through September, according to an exchange filing Thursday, compared with the 2.3 billion-rupee estimate of 18 analysts compiled by Bloomberg. Sales fell 32 percent to 17.4 billion rupees. In July, Nestle India Ltd. reported its first quarterly loss in more than 15 years because of the ban, which an Indian court overruled in August.