HUL Q3 net profit up 7%, sales fall 1.24%

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Mumbai: Hindustan Unilever Ltd’s fiscal third-quarter profit rose 6.82% because of a one-time gain of Rs153.05 crore from sale of properties.

Net profit rose to Rs 1,037.93 crore for the three months ended 31 December from Rs971.66 crore a year ago, the company said in a statement to the exchanges on Monday.

Net sales fell 1.24% to Rs8,124.48 crore from Rs8,226.55 crore a year-ago. HUL’s sales by volume declined by 4% in the third quarter. Personal care segment sales, which contribute almost half of its revenue, fell 2.7% to Rs3,980.17 crore from Rs 4,090.48 crore a year ago.

HUL was expected to post a profit of Rs.973 crore on sales of Rs.7,394.9 crore, according to a Bloomberg poll of analysts.

Earnings before interest, tax, depreciation and amortization for the quarter fell 5% to Rs1,355.44 crore against Rs1,430.18 crore a year ago.

“The gradual recovery of the market was temporarily impacted by adverse liquidity conditions. However, our performance demonstrated resilience and agility in this challenging environment. There are early signs of normalization and our focus continues to remain on innovation led volume growth and improvement in margins. Our strategic agenda of delivering consistent, competitive, profitable and responsible growth remains unchanged,” chairman Harish Manwani said.

Shares of HUL gained 0.25% to close at Rs863.25 on BSE on a day the benchmark Sensex rose 0.31% to close at 27,117.34 points.