Hindustan Unilever Ltd (HUL) on Tuesday reported a 15% increased in its June quarter net profit, driven by higher revenue and a fall in raw material cost. Total revenue from sale of products and domestic consumer business grew 7% in the reporting quarter.
Net profit for the quarter was at ₹1,755 crore, up 14.9% from ₹1,528 crore a year ago. A Bloomberg poll of 18 analysts estimated HUL’s net profit at ₹1,715.80 crore, and revenue at ₹10,170.90 crore.
Revenue from operations rose 6.7% year-on-year to Rs9,984 crore, while cost of materials consumed fell 6.5% from a year ago to ₹3,161 crore.
Operating margin improved of 250 basis points. In absolute terms, EBITDA (earnings before interest, tax, depreciation and amortization) was rose 18% to ₹2,647 crore in April-June.
The company said margin expansion was driven by improved mix, leverage in operating and advertising spends and savings agenda.
"HUL has delivered a resilient performance driven by expansion of our consumer franchise, improvement in portfolio mix and sustained growth in margins. Our focus on strengthening the core, leading market development & premiumisation, driving channel transformation and building brands with purpose, continues to serve us well," said Sanjiv Mehta, chairman and managing director HUL.
In the June quarter, growth was driven by its home-care portfolio which grew 10% on a comparable basis. The personal care and beauty portfolio and food and refreshment segments grew 5.6% on a comparable basis.
During the June quarter, the company's advertising and promotion spends rose a tad--0.7%--from a year ago.
Shares of HUL today closed 0.9% higher at ₹1,693.20 on the BSE.