Hindustan Unilever rose 1.35% to Rs 602.25 at 9:34 IST on BSE after net profit rose 13.24% to Rs 913.80 crore on 9.6% rise in net sales to Rs 6747.20 crore in Q2 September 2013 over Q2 September 2012.
The company announced Q2 results on Saturday, 26 October 2013.
Meanwhile, the BSE Sensex was up 65.36 points, or 0.32%, to 20,748.88.
On BSE, 62,000 shares were traded in the counter compared with average volume of 1.98 lakh shares in the past one quarter.
The stock hit a high of Rs 619.95 and a low of Rs 600 so far during the day. The stock hit a record high of Rs 725 on 24 July 2013. The stock hit a 52-week low of Rs 432.25 on 7 March 2013.
The stock had underperformed the market over the past one month till 25 October 2013, sliding 6.20% compared with the Sensex's 4.17% rise. The scrip had also underperformed the market in past one quarter, falling 13.45% as against Sensex's 4.44% rise.
Also Read
The large-cap company has an equity capital of Rs 216.26 crore. Face value per share is Re 1.
Hindustan Unilever (HUL) said the operating context during the quarter was challenging given the volatile cost environment, led by the Rupee depreciation, and heightened competitive intensity. Overall industry media spend was up to its highest levels in over 18 quarters, with a particularly sharp increase in oral care segment. The company said it invested at competitive levels across segments with a significant step up in personal products domain - overall advertising and promotion (A&P) spend was up by Rs 185 crore (+165 basis points) in the quarter.
Despite a sharp increase in A&P spends, profit before interest and tax (PBIT) grew by 11% with PBIT margin improving +20 bps. Profit after tax before exceptional items grew by 10% to Rs 883 crore.
HUL said its soaps and detergents business grew by 6%. The company said its personal products business grew 12% in a slowing market while beverages business grew by 16%. Packaged foods business grew by 9%.
Harish Manwani, Chairman, HUL, commented: "We have delivered another quarter of competitive and profitable growth. The consistency and resilience of our performance, in what has been a challenging market environment for some quarters now, is a reflection of the discipline with which we are managing our business and executing our strategy. We continue to strengthen our business for the long term by driving innovation, investing behind our brands and further building organizational capabilities."
HUL is India's largest FMCG company in terms of sales with over 35 brands spanning 20 distinct categories such as soaps, detergents, shampoos, skin care, toothpastes, deodorants, cosmetics, tea, coffee, packaged foods, ice cream, and water purifiers.
Powered by Capital Market - Live News