Hindustan Unilever Falls After September Quarter Earnings
Shares of the country's largest fast moving consumer goods (FMCG) maker - Hindustan Unilever - fell nearly 1 per cent to hit an intraday high of Rs 2,153.30 on the BSE a day after it announced September quarter earnings. Hindustan Unilever on Tuesday reported that its standalone net profit in July-September period rose 9 per cent to Rs 2,009 crore from Rs 1,848 crore during the same period last year. Hindustan Unilever's revenue from sale of products advanced 16 per cent to Rs 11,276 crore as against sales of Rs 9,708 crore during the corresponding period last year.
Hindustan Unilever's earnings before interest, tax, depreciation and amortization (EBITDA) also known as operating profit came in at Rs 2,869 crore, up 17 per cent on a year-on-year basis while its operating profit margin improved by 30 basis points, the company said in an exchange filing.
The company's board declared an interim dividend of Rs 14 per share and the record date for payment of interim dividend is fixed at October 29, Hindustan Unilever said.
"In the context of challenging economic environment, our growth has been competitive and profitable. We continue to demonstrate execution prowess, agility, adaptability, resilience, and passion of our people," Sanjiv Mehta, chairman and managing director, Hindustan Unilever said in a statement.
"The economic outlook has improved given the various initiatives taken by the government and Reserve Bank of India. In our sector, rural markets have been resilient but the demand in urban India especially in metropolitan cities has been muted. We believe that worst is behind us and we are cautiously optimistic on demand recovery," Mr Mehta added.
The company's health, hygiene and nutrition business, which forms 80 per cent of its total portfolio, grew in double digits, Hindustan Unilever said.
As of 12:44 pm, Hindustan Unilever shares traded 0.62 per cent lower at Rs 2,158, underperforming the Sensex which was up nearly 1 per cent.