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HUL gains after Q4 earnings

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Capital Market
Last Updated : May 08 2015 | 8:03 PM IST

Hindustan Unilever rose 2.89% to Rs 890.75 at 15:15 IST on BSE after the company reported decent Q4 results during trading hours today, 8 May 2015.

Meanwhile, the BSE Sensex was up 502.97 points, or 1.89%, to 27,102.08.

On BSE, so far 6.10 lakh shares were traded in the counter, compared with an average volume of 1.20 lakh shares in the past one quarter.

The stock hit a high of Rs 906.65 and a low of Rs 854.70 so far during the day. The stock hit a record high of Rs 979 on 11 March 2015. The stock hit a 52-week low of Rs 550.30 on 8 May 2014.

The stock had outperformed the market over the past one month till 7 May 2015, falling 4.97% compared with 6.72% fall in the Sensex. The scrip had also outperformed the market in past one quarter, falling 4.38% as against Sensex's 7.38% fall.

The large-cap FMCG major has an equity capital of Rs 216.35 crore. Face value per share is Re 1.

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Hindustan Unilever's (HUL) net profit rose 16.73% to Rs 1018.08 crore on 7.31% increase in total income to Rs 7774.04 crore in Q4 March 2015 over Q4 March 2014. The result was announced during trading hours today, 8 May 2015.

HUL said its input costs were benign during the quarter and this is reflected in the 310 basis points (bps) reduction in Cost of Goods Sold. Investment behind brands was sustained at competitive levels; overall Advertising & Promotion (A&P) was up by Rs 188 crore (+150 bps). Profit before interest and tax (PBIT) grew by 23% and PBIT margin improved by 190 bps. The margin for the quarter includes a one-time credit of Rs 71.50 crore towards a favourable outcome for a contested matter on excise duty. Profit after tax before exceptional items, PAT (bei), grew by 9% to Rs 911 crore, impacted by the higher tax rate. Net Profit at Rs 1018 crore, was up 17%, aided by the exceptional income arising from the sale of properties/subsidiary, the company said in a statement.

HUL's net profit rose 11.58% to Rs 4315.26 crore on 9.72% increase in total income to Rs 31424.01 crore in the year ended March 2015 over the year ended March 2014.

In the year ended March 2015, HUL's Domestic Consumer business grew by 10% with 5% underlying volume growth, both ahead of market. Profit before interest and tax (PBIT) grew by 17% with PBIT margin improving +90 bps. Profit after tax but before exceptional items, PAT (bei), grew by 8% to Rs 3843 crore, impacted by the higher tax rate. Net profit at Rs 4315 crore was up 12%, aided by the exceptional income arising from property related sales. The strong track record of cash generation was sustained as cash from operations exceeded Rs 5000 crore for yet another year.

Harish Manwani, Chairman commented: "We have delivered another year of strong performance with broad based growth ahead ofthe market and sustained margin improvement. Our strategy remains focused on strengthening the core of our business through innovation, leading market development and continuous improvement of our executional capabilities. Despite market challenges, our strategic agenda remains unchanged as we continue to manage our business even more dynamically for growth that is consistent, competitive, profitable and responsible."

Hindustan Unilever is India's largest fast moving consumer goods (FMCG) company.

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First Published: May 08 2015 | 3:09 PM IST

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