HUL posts estimate-beating 12% rise in Q3 profit to ₹1,616 crore1 min read . Updated: 31 Jan 2020, 06:23 PM IST
- The company said there was a sharp slowdown in rural spends
- Sales rose 3.5% to ₹9,6969 crore
MUMBAI: Hindustan Unilever Ltd (HUL) on Friday reported a 12% year-on-year (Y-o-Y) rise in its standalone profit after tax (PAT) at ₹1,616 crore for the December quarter, against ₹1,444 crore posted in the same period a year ago. This was higher than the ₹1,596 crore estimated by a Bloomberg poll of 25 analysts.
Net sales at the country's largest consumer goods maker increased 3.6% to Rs9,696 crore in Q3FY20 as compared to Rs9,357 crore in Q3FY19.
Shares of HUL closed trade at ₹2,034.70 apiece, down 1.2% on the BSE.
During the quarter under review, total income grew by 2.94% to ₹9,948 crore as against ₹9,664 crore, helped by its home-care and food and refreshment portfolios.
The earnings before interest, tax, depreciation and amortisation (EBITDA) rose by 19% to Rs2,445 crore from Rs2,046 crore in the same quarter last fiscal.
Commenting on Q2 results, Sanjiv Mehta, Chairman and Managing Director said, "This quarter witnessed an overall challenging market environment, mainly reflecting a sharp slowdown in rural and discretionary spends. In this tough environment, HUL has delivered a resilient performance which is reflective of the strength of our brands, consistency in strategy and execution prowess. Our continued focus on innovation and market development has helped sustain underlying growth at a steady 5%. We have also delivered a healthy margin development."
Segment wise, revenue of home care vertical increased 9.78% to ₹3,456 crore from ₹3,148 crore, while beauty and personal care segment revenue dropped 2.80% to ₹4,412 crore from ₹4,539 crore in the same period of last year.
The revenue of foods & refreshment segment stood at ₹1,865 crore in October-December 7.93% against ₹1,728 crore in the same quarter of last year.