FMCG major Hindustan Unilever Limited (HUL) reported 9% rise in its June quarter net profit to ₹1,283 crore while its topline increased 4.8% to ₹9,335 crores despite flat volume growth.
“During the quarter, trade sentiment remained cautious, particularly in the run up to GST implementation,” said a company statement.
“Despite high promotional intensity, stock pipelines remained low and varied across categories, channels and geographies. In these challenging circumstances we managed to deliver yet another quarter of resilient and profitable growth,” it said.
HUL’s domestic consumer business rose 6% and its earnings before interest, tax, depreciation and amortisation (EBITDA) increased 14% following a 160 basis points (bps) increase in EBITDA margins.
‘Smooth transition’
“This quarter saw the announcement of the launch of GST, a ground-breaking tax reform for India,” said Harish Manwani, chairman, HUL, on the results.
“I am pleased with the manner in which our business worked closely with all key stakeholders including industry associations, the government and our trade partners to prepare the ground for a smooth transition. Despite the short term challenges of this transition, our company delivered yet another resilient performance,” he said.
“Both growth and margin improvement were delivered through a combination of sustained innovations, a comprehensive savings program and a relentless focus on execution in the market place. We remain positive on the medium term outlook for the industry and will continue to drive consumer value, which also delivers profitable volume driven growth for the company,” Mr. Manwani added.
HUL shares on BSE closed up marginally at ₹1,158 in a weak Mumbai market on Tuesday, valuing the company at ₹2,50,688 crore. The results were declared after the closure of market hours.