Sharply above the analysts’ estimates, Hindustan Unilever on Thursday reported a 41 per cent year-on-year jump in its net profit to Rs. 2,143 crore for the quarter ended March. Surpassing Street’s estimates, the company reported 34.6 per cent on-year growth in revenue to Rs. 12,132 crore for the reported quarter.
It reported underlying volume growth of 16 per cent for the quarter, beating analysts’ expectations of 15 per cent. The company’s operating performance for the quarter was also better than Street’s evaluation as it reported an operating profit of Rs. 3,043 crore and an operating margin of 25 per cent.
The company said its domestic consumer growth in the reported quarter stood at 21 per cent, reflecting a marked improvement both on sequential and annual bases.The strong growth in volume shows a commending base effect for the company given the weakness in the year-ago period. HUL’s in-quarter performance was strong on both the top-line and bottom-line. Despite challenging times, in FY’2, the company’s business ecosystem has withstood the disruption and demonstrated agility and resilience across the value chain.
HUL said in an exchange filing that health, hygiene and nutrition products, which form 80 per cent of the company’s business, grew in double-digits for a third straight quarter, while discretionary and out-of-home categories improved sequentially.The company’s focused actions on net revenue management and savings have enabled it to manage inflationary pressures and deliver a healthy bottom-line performance.
The company said that they managed Covid-19 challenges well and sustained strong cash generation.
For the financial year ended March, the company’s sales from products surged 18 per cent to Rs. 45,311crore despite the hit taken from the Covid-19 pandemic in the June quarter. The soap-to-shampoo company’s bottom line in the financial year jumped 18 per cent to Rs. 7,954crore with domestic consumer growth at 6 per cent. Shares of Hindustan Unilever were up 1.1 per cent at Rs. 2,432.4 on NSE after the earnings announcement. HUL announced a final dividend of Rs. 17 per share.
Smrutirekha Bhoi