HUL Q1 net profit up 112 pc to Rs 1331.2 cr

Mumbai: Fast moving consumer goods major Hindustan Unilever reported strong operating numbers for the June quarter, with net sales rising 13.7 per cent year-on-year to Rs 6,250.15 crore. Profit before interest and taxes (PBIT) jumped 30.2 per cent YoY to Rs 908.82 crore. But most of the questions thrown at chief financial officer R Sridhar at the press conference were about the likely impact of deficient rainfall on the company’s bottomline in the coming quarters.

HUL shares have gained around 10 per cent since the start of the calendar, compared with a 9 per cent rise in the Sensex and a 23 per cent increase in the BSE FMCG index.

Other income went up 332 per cent YoY to Rs 218.6 crore. Exceptional items stood at Rs 604.7 crore in the first quarter of FY13 as against Rs 58.75 crore in a year ago period.

In the first quarter of the financial year 2012-13, company has re-launched its flagship brand - Fair and lovely and also launched Axe soap bar. "We made entry into mouthwash segment with Pepsodent," company said.

CFO R Sridhar said personal care operations grew by 21 per cent and soaps & detergents operations went up by 24 per cent (YoY) in Q1 while foods business grew by 11 per cent during the same period.

Margin moved up by 180 basis points during the quarter. Advertising spend went up by 160 basis points year-on-year.

Segmentwise Performance

Revenues from soaps & detergents segment increased 23.7 per cent to Rs 3,163 crore from Rs 2,557.6 crore and earnings before interest & tax (EBIT) jumped by 63 per cent to Rs 385.2 crore from Rs 236 crore YoY.

Personal products' revenues declined by nearly 26 per cent year-on-year to Rs 1,247 crore in the quarter ended June 2012, but EBIT rose by 15.8 per cent to Rs 475.7 crore.

Beverages' revenues grew by 7.35 per cent to Rs 654 crore and EBIT shot up by 1126.8 per cent to Rs 925 crore.

Packaged Foods' revenues were up by 17.3 per cent to Rs 437 crore and EBIT increased 43.7 per cent to Rs 25 crore during the same period.

HUL Chairman, Harish Manwani says market remains challenging in terms of inflation and slowdown.