FMCG major Hindustan Unilever Limited (HUL) has posted an 18.87 per cent year-on-year (YoY) growth in its standalone net profit at Rs 1,921 crore for the third quarter ended December 31, 2020, driven by cost saving measures. The company had posted a profit of Rs 1,616 crore in the same period last year. On the sequential basis, the profit fell by 4.30 per cent from Rs 2,009 crore in September quarter of 2020.
"Net revenue management and savings agenda has enabled us drive healthy bottom line," HUL said in a regulatory filing.
The revenue from operations stood at Rs 11,682 crore, up 20.48 per cent YoY and 3.6 per cent quarter-on-quarter (QoQ). Domestic consumer growth (excluding the impact of merger of GSK CH and acquisition of 'VWash') grew at 7 per cent.
On the operational front, the EBITDA (Earnings before Interest, Taxes, Depreciation, and Amortisation) margins stood at 24 per cent.
"Higher mobility, consumer relevant innovations and investments behind market development are driving business momentum. Our business fundamentals remain strong with 86 per cent of our business gaining penetration," HUL said.
The company said that health, hygiene and nutrition, which constitutes 80 per cent of its portfolio, continues to grow in double digits and has seen significant improvement in discretionary categories.
Segment wise, revenue from homecare division fell by 1 per cent to Rs 3,409 crore. The revenue from beauty & personal care segment rose by 10 per cent to Rs 4,841 crore, while foods & refreshment reported revenue growth of 80 per cent at Rs 3,356 crore.
Commenting on Q3 results, Sanjiv Mehta, Chairman and Managing Director said, "With COVID cases coming down sharply and increasing mobility, economic activity in the country continues to improve. The rapid rollout of vaccines will give further impetus to economic growth. Our consumer relevant innovations, market development and execution excellence have enabled us to drive broad based growth across our categories in the December quarter."
"The near-term demand outlook is improving, and we expect to see revival in urban while rural should continue to do well. Inflationary pressures are building up in select commodities and we will manage them judiciously. I am confident that we are very well positioned to capture the growth opportunities and accelerate momentum," he added.
HUL also announced the appointment of Ritesh Tiwari as Executive Director, Finance & Chief Financial Officer and a member of the Board, effect from May 1, 2021, subject to necessary government approvals. He will also take over as the Vice President Finance, South Asia, Unilever.
Ahead of Q3 results, shares of HUL ended Wednesday's trade at Rs 2,390.75, down 0.34 per cent, against previous closing price of Rs 2,398.90.