HUL posts 16% jump in net profit

New Delhi, Oct. 25: FMCG major Hindustan Unilever (HUL) on Wednesday reported a 16.42 per cent jump in its standalone net profit at `1,276 crore for the September quarter, taking advantage of lower expenses.

The company had posted a net profit of `1,096 crore during the same period of the previous fiscal, HUL said in a regulatory filing.

Net sales during the quarter under review stood at `8,199 crore as against `8,335 crore in the year-ago period, down 1.63 per cent.

“The impact of GST was during the early part of the quarter, but overall the transition to GST has been smooth,” HUL CFO P.B. Balaji said.

With regard to inventory levels getting back to normal, he said it is fair to say the urban channel has almost gone back to normal and the rural area is rapidly picking up.

On the outlook, Balaji said the company expects the rural demand to pick up and is banking on good monsoon this season, among other factors.

HUL’s expenses in the second quarter were down 5.95 per cent at `6,748 crore compared to `7,175 crore during JulySeptember last fiscal.

“In a challenging business environment, we delivered a particularly strong overall performance. This reflects the strength of our brands and our relentless focus on execution in the market place,” HUL chairman Harish Manwani said.

Standalone net profit last quarter stood at `1,283 crore.

Revenue from the personal care segment during the quarter in question was at `3,910 crore as against `4,028 crore a year earlier. The figure from homecare stood at `2,739 crore compared to the earlier `2,777 crore.

The refreshment category chipped in with `1,222 crore during the quarter as against `1,169 crore previously.

On outlook, Mr Manwani said: “Despite short-term challenges, we are confident of the medium-term outlook for the FMCG industry and remain focussed on driving consumer value and profitable volume-driven growth.”

“Trade conditions continue to improve and the wholesale channel is steadily normalising,” the company said.

Meanwhile, the company’s board has declared an interim dividend of `8 per share of face value `1 each for the year that ends next March.