HUL FY19 profit surges 16% to Rs 6,060 crore despite weak rural demand

FMCG major Hindustan Unilever Limited (HUL) on Friday reported a 15.98 per cent growth in consolidated net profit at Rs 6,060 crore for the financial year ended March 31, 2019, as compared to Rs 5,225 crore in the last fiscal.

"Consolidated revenue for 2018-19 stood at Rs 39,860 crore, up from Rs 36,622 crore a year earlier," HUL said in a filing to the Bombay Stock Exchange.

HUL's business in India grew by 12 per cent, driven by 10 per cent volume growth in the domestic market.

In January-March quarter, the company posted a 13.84 per cent growth in its standalone net profit at Rs 1,538 crore as compared to Rs 1,351 crore in the same quarter last year.

The sales of the company stood at Rs 9,809 crore in Q4FY19 from Rs 9,003 crore in Q4FY18, registering a growth of 8.95 per cent.

The operating profit (EBITDA) for the March quarter was up 13 per cent year-on-year at Rs 2,321 crore and EBITDA margin was up 90 bps.

The company said that margin improved due to prudent management of volatility in costs (crude and currency led) along with improved mix and operating leverage.

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Commenting on earnings, HUL Chairman and Managing Director Sanjiv Mehta said, "We have delivered a strong performance for the quarter despite some moderation in rural market growth. Our focus on strengthening the core and leading market development has been consistently delivering good results. We have now grown top line and bottom line for the eighth consecutive year and our 2019 results are a testament to both our strategy and execution."

"Given the macro-economic indicators, near-term market growth has moderated. However, medium-term outlook stays positive. As an organisation we are well-positioned to respond with speed and agility to meet the needs of our consumers. We remain focused on our strategic agenda of delivering consistent, competitive, profitable and responsible growth," he added.

The company's board has proposed a final dividend of Rs 13 per share on face value of Rs 1 each, subject to the approval of the shareholders at the AGM. "Together with the interim dividend of Rs 9 per share, the total dividend for the financial year ending March 31, 2019 amounts to Rs. 22 per share," the company said.

HUL shares closed trade at Rs 1,692.80 a piece, down 2.04 per cent, on the BSE on Friday.

Edited by Chitranjan Kumar