HUL Q2 standalone net profit rises 21.18 per cent

Chairman and managing director Sanjiv Mehta said “the near-term outlook for demand, especially in rural India, remains challenging”

The company’s revenue from home care segment rose to Rs 3,371 crore in July-September 2019 from Rs 3,080 crore in the year-ago quarter, according to an exchange filing.

Notwithstanding the slowdown in the economy, FMCG major Hindustan Unilever Ltd (HUL) Monday posted a 21.18 per cent rise in standalone net profit to Rs 1,848 crore for the quarter ended September 2019, as against a net profit of Rs 1,525 crore for the corresponding period last fiscal.

Even as HUL’s total income during the quarter under review rose to Rs 10,032 crore from Rs 9,539 crore for the same period a year ago, chairman and managing director Sanjiv Mehta said “the near-term outlook for demand, especially in rural India, remains challenging.”

“Amidst a challenging market environment, HUL has delivered another quarter of resilient performance and sustained margin improvement. Our focus on consumer value, excellence in execution and market development continues to serve us well,” Mehta said, adding that “margin expansion was driven by improved mix, benign commodity price movement in our large segments and our savings agenda”.

The company’s revenue from home care segment rose to Rs 3,371 crore in July-September 2019 from Rs 3,080 crore in the year-ago quarter, according to an exchange filing. Beauty and personal care segment revenue increased to Rs 4,543 crore in the quarter under review from Rs 4,316 crore in the year-ago period.

The revenue of foods and refreshment segment stood at Rs 1,847 crore in July-September 2019, against Rs 1,704 crore in the same quarter of last year. The board of directors has declared an interim dividend of Rs 11 per share for the year ending March 31, 2020, the company said.

“We welcome the various measures announced by the government and the Reserve Bank of India to spur investment and improve liquidity and are confident that the government will take all necessary steps for higher income transference to rural India. HUL remains well positioned to unlock the structural FMCG India opportunity while navigating the short-term challenges.

“We continue to progress our ‘purpose-led and future-fit’ agenda which is underpinned by our sustainability initiatives and ‘Re-imagining HUL’ driven by leveraging data and technology in all aspects of our operations,” Mehta said.