Hindustan Unilever Q1 net profit rises 3.68 per cent, beats estimates

FMCG major Hindustan Unilever Ltd on Monday reported a 3.68 per cent increase in standalone net profit at Rs 1,056.85 crore for the first quarter ended June 30, 2014-15, amidst a challenging market.

It had posted a net profit of Rs 1,019.25 crore in the April-June quarter of 2013-14 on account of exceptional gains of Rs 106.25 crore. Exceptional items in Q1, 2014-15 stood at Rs Rs 40.15 crore on sale of surplus properties.

HUL's net sales climbed to Rs 7,570.78 crore in Q1, from Rs 6,687.49 crore in the period a year ago, up 13.20 per cent.

HUL Chairman Harish Manwani said, "We continue to grow ahead of our markets and have delivered another quarter of strong top and bottom-line performance."

The company's CFO P B Balaji said that the market was slowing down further and the premium and discretionary categories remained under pressure.

"There is not much respite from high inflation and negative consumer sentiments. In case of premium category products, we are seeing customers buying smaller packets/sachets of premium categories as against bigger packets," he said.

Revenue from soaps and detergents in Q1 increased by 12.90 per cent to Rs 3,847.58 crore and of personal products by 14.66 per cent to Rs 2,159.56 crore.

Revenue from beverages grew by 10.45 per cent to Rs 836.56 crore and packaged foods by 18.76 per cent to Rs 543.78 crore.

Overall expenses in Q1 stood at Rs 6,466.52 crore, as against Rs 5,789.88 crore in the same period last year.

The HUL scrip closed at Rs 686.45, up 3.69 per cent, on the BSE.