Hindustan Unilever quarterly net profit rises 21.7 percent

October 31st, 2011 - 5:56 pm ICT by IANS  

Mumbai, Oct 31 (IANS) Fast moving consumer goods major Hindustan Unilever Ltd (HUL) Monday reported an increase of 21.7 percent in net profit at Rs.689 crore for the quarter ended Sep 30 as against Rs.566 crore during the like period of the previous financial year.

The total income during the quarter under review stood at Rs.5,688.15 crore, up 17.49 percent as against Rs.4,841.49 crore during the like period of the previous fiscal, the company said in a regulatory filing.

According to the company during the quarter under review, domestic consumer business grew at 18.5 percent with strong underlying volume growth of 9.8 percent.

“Against the backdrop of a challenging environment, we have delivered one of our strongest quarters with topline growth well ahead of the market and improved operating margins,” said Harish Manwani, HUL chairman.

“We will continue to leverage consumer insights to deliver winning innovations and maintain relentless focus on execution, cost management and building organizational capabilities for competitive advantage,” he added.

All segments delivered double-digit growth with soaps and detergents reporting a growth of 21.8 percent. The personal products segment grew by 18.2 percent while beverages and packaged foods grew by 14.6 percent 20.9 percent, respectively.

According to the company, distribution across modern electronic retail chains is being scaled up and “go to market” integration is expected to be completed by the year-end.

The company also said that inflation and commodity costs continued to be high during the quarter while it managed cost pressures through aggressive savings programmes coupled with judicious pricing.

“Cost of goods sold is up by 340 basis points due to high input costs, especially in soaps and detergents,” said the company.

HUL also approved a proposal for entering into an alliance with Tata Teleservices Ltd. and Tata Teleservices (Maharashtra) Ltd. for distribution of telecom products leveraging the company’s distribution network in rural markets in India.

The companies will now finalize the details of the alliance.

HUL also declared an interim dividend of Rs.3.50 per share.

At the Bombay Stock Exchange, the shares of the company were 5.79 percent up to trade at Rs.369.70

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