Hindustan Unilever (HUL) is trading higher by almost 3% at Rs 455 after reporting 112% year-on-year (yoy) jump in net profit at Rs 1,331 crore for the quarter ended June 2012, on back of land deals.
The core net profit (before accounting for exceptional items) has increased by a 48% to Rs 855 crore during the recently concluded quarter. Revenues grew 14% at Rs 6,250 crore during the quarter under review on yoy basis.
The fast moving consumer goods company saw an improvement of 160 basis points in operating profit margin to 14.5% as the company implemented cost efficiencies in several overheads, namely raw material costs, which is down 505 bps to 52.8% to total income.
In the beginning of April, HUL and entities of Piramal Realty (Ajay Piramal Group) had signed an agreement for assignment of HUL’s leasehold rights of the land and building named Gulita situated at Worli Sea Face, Mumbai, for a transaction value of Rs 453 crore.
A combined 250,000 shares have changed hands on the counter in opening deals.
