Shares of Hindustan Unilever Limited (HUL) rallied over 5 per cent in intraday trade, hitting 52-week high on the Bombay Stock Exchange (BSE), on Monday after the fast-moving consumer goods (FMCG) major reported better-than-expected earnings during December quarter.
The country's largest consumer goods company on Friday reported a jump of 11.9 per cent in consolidated net profit at Rs 1,616 crore for the quarter ended December, 2019, compared to Rs 1,444 crore in the corresponding period last year.
During October-December quarter, sales stood at Rs 9,696 crore as compared to Rs 9,357 crore in the year ago period. On volume front, the company reported a growth of 5 per cent despite a challenging market environment.
According to market experts, HUL's volume growth was higher than FMCG sector's volume growth of 3 per cent during December quarter.
Boosted by strong Q3, HUL share price gained 5.48 per cent to hit a 52-week high of Rs 2,189 on the BSE against previous closing price of Rs 2,073.60. In contrast, the BSE Sensex was trading 4 points, or 0.01 per cent, lower at 39,731.
The stock saw surge in volume trade as 0.79 lakh shares changed hands over the counter as compared to two-week average volume of 0.70 lakh shares.
In a similar trend, HUL shares were trading 5.40 per cent higher at Rs 2,187 per cent on the National Stock Exchange (NSE). The stock touched a 52-week high after opening flat at Rs 2,074.90.
In Q3FY20, Earnings before Interest, Tax, Depreciation and Amortization (EBITDA) expanded by rose by 19 per cent year-on-year to Rs 2,445 crore. EBITDA margin rose to 24.9 per cent from 21.4 per cent.
By Chitranjan Kumar