The Hindu Business Line : HUL net profit rises 34% on higher pricing, volumes

Mumbai, Oct. 24 Higher pricing, improved volumes and one-time gains helped consumer goods maker Hindustan Unilever (HUL) clock a 34 per cent rise in net profit for the second quarter ended September 20.

Net profit for the quarter rose to Rs 546.61 crore from Rs 408.06 crore in the corresponding quarter a year ago. Total income was up by 21 per cent, at Rs 4,111 crore (Rs 3,395.1 crore).

On an annualised basis, the company was able to achieve pricing improvement of 14 per cent while volumes went up by seven per cent (for the fast moving consumer goods business), Mr D. Sundaram, Vice-Chairman and Chief Financial Officer, HUL, told reporters here on Friday. The company managed to achieve volume growth in both rural and urban areas of the country, Mr Sundaram added.

“Consumer spending remains robust in FMCG and we continue to improve our turnover ahead of aggregated market growth. Softening of commodity prices, if sustained, will augur well both for consumers and the business,” said Mr Harish Manwani, Chairman.

Exceptional items in the September quarter include restructuring costs of Rs 22.43 crore and profit on sales of properties of Rs 131.6 crore.

Other operational income includes gains of Rs 21.6 crore on account of mark to market valuation of open forward contracts and monetary items (viz foreign currency receivables & payables) in line with accounting standards 11

The HUL scrip closed at Rs 224.9 on the BSE on Friday, 7.56 per cent lower than the previous close .

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