Hindustan Unilever (HUL), the fast-moving consumer goods (FMCG) maker, on Thursday posted a standalone net profit of Rs 2,061 crore for the quarter ended June 2021, implying growth of 9.56 per cent on a year-on-year (YoY) basis. Its standalone net profit stood at Rs 1,881 crore in the corresponding quarter last fiscal. On a sequential basis, profit for the quarter declined by 3.8 per cent as against Rs 2,143 crore posted in the March 2021 quarter.
The standalone revenue from operations during Q1 of financial year 2021-22 (FY22) rose 12.83 per cent YoY but declined 1.8 per cent quarter-on-quarter (QoQ) to Rs 11,915 crore. The figure stood at Rs 10,560 crore in the same quarter last year and at Rs 12,132 crore in the preceding quarter.
“In a challenging context of Covid Wave 2, HUL delivered a strong performance with Domestic Consumer Growth of 12 per cent, underlying volume growth of 9 per cent and profit after tax growth of 10 per cent. Performance was broad-based with all 3 divisions growing competitively and in double-digits. Our business fundamentals remain strong with a large part of our business gaining penetration,” the company said in results filing.
On operating front, its earnings before interest, tax, depreciation and amortisation (Ebitda) grew 8 per cent YoY to Rs 2,847 crore as against Rs 2,644 crore. Ebitda margin, however, for the period suffered amid high commodity costs and declined by 110 bps YoY to 24 per cent. Our focused actions on net revenue management and savings have enabled us to manage inflationary pressures and deliver a healthy bottom-line performance, it added.
The results were largely in line with Street expectations. Most brokerages were penciling in a profit growth in the range of 7-15 per cent YoY while revenue projections ranged between 11-20 per cent. READ HERE
“Our performance in the quarter has been resilient and is reflective of our capabilities, the agility in our operations and the intrinsic strength of our portfolio. Looking forward, we remain cautiously optimistic about the demand recovery. Our focus firmly remains behind delivering volume led competitive growth and margins in a healthy range,” Sanjiv Mehta, Chairman and Managing Director of HUL said.
Following its Q1 results presentation, the stock was trading 1.45 per cent lower at Rs 2398.65 per share as against a rise of 1.12 per cent in BSE Sensex at 52,782.