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HUL reports 8.9% rise in December quarter profit, logs 10% volume growth

Net profit rose to Rs 1,444 crore for the quarter ended December 2018 compared with Rs 1,326 crore a year earlier.

Consumer goods maker Hindustan Unilever Ltd (HUL) reported a 8.9 percent rise in December quarter profit on Thursday, in line with street estimates, driven by higher revenue from its beauty and personal care segment.

Net profit rose to Rs 1,444 crore for the quarter ended December 2018 compared with Rs 1,326 crore a year earlier.

Analysts, on average, had expected a profit of Rs 1442 crore, according to I/B/E/S data from Refinitiv. Sales rose 12.4 percent to Rs 9,357 crore in December quarter compare to Rs 8323 crore in the corresponding previous fiscal.

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Revenue from its beauty and personal care segment, which includes brands such as Dove and Sunsilk, gained nearly 11 percent to Rs 4539 crore compared to Rs 4090 crore  in the corresponding quarter of the previous fiscal.

"Domestic consumer growth was 13 per cent with underlying volume growth at 10 per cent. EBITDA margin was up 170 basis points and profit after tax (before exceptional items) grew by 17 per cent," HUL said in a statement.

Commenting on the results, HUL chairman and managing director Sanjiv Mehta said: "We have delivered another strong performance in the quarter, with double digit volume growth and improvement in margins."

He further said: "Our focus on strengthening the core and leading market development by tapping into emerging trends has been yielding results across categories."

HUL's total expenses for the said period came in at Rs 7,652 crore as against Rs 7,036 crore, up 8.75 per cent.

Shares of HUL settled at Rs 1,750.10 apiece on the BSE, down 1.12 per cent from their previous close.

With PTI inputs

Edited by Aseem Thapliyal