Hindustan Unilever gained 3.29% to Rs 683.80 at 15:16 IST on BSE, after net profit rose 3.68% to Rs 1056.85 crore on 13.35% growth in total income to Rs 7918.45 crore in Q1 June 2014 over Q1 June 2013.
The Q1 result was announced during market hours today, 28 July 2014.
Meanwhile, the S&P BSE Sensex was down 195.26 points or 0.75% at 25,931.49
On BSE, so far 7.32 lakh shares were traded in the counter as against average daily volume of 1.29 lakh shares in the past one quarter.
The stock saw high intraday volatility. The stock gained as much as 4.38% at the day's high of Rs 691.05 so far during the day. The stock fell as much as 1.12% at day's low of Rs 654.55 so far during the day. The stock hit a 52-week high of Rs 714 on 25 July 2013. The stock hit a 52-week low of Rs 536 on 15 January 2014.
The large-cap FMCG company has an equity capital of Rs 216.31 crore. Face value per share is Re 1.
Hindustan Unilever (HUL) said that profit before interest and tax (PBIT) grew by 23% and PBIT margin improved by 130 bps in Q1 June 2014 over Q1 June 2013. The Q1 June 2014 results were boosted by one time credit of about Rs 32 crore on account of adjustments for unutilized pension corpus relating to earlier periods. Profit after tax before exceptional items, PAT (bei), grew by 15% to Rs 1020 crore while net profit rose 4% to Rs 1057 crore, impacted by the higher exceptional income arising from the sale of properties and tax credits in the base quarter.
During Q1 June 2014, the domestic consumer business grew at 13%, ahead of market, with 6% underlying volume growth. All segments registered double digit growth, HUL said.
HUL saw broad based double digit growth in soaps and detergents segment. In laundry segment, growth was led by the premium segment with Surf sustaining its strong growth momentum and Rin accelerating across both powders and bars. Personal products saw strong growth in a challenging environment. In Oral Care, investments were continued to sustain our competitiveness in the category. In beverages segment, HUL saw double digit growth in tea and coffee. In Packaged Foods, Kissan, Knorr, Kwality Walls and Magnum logged double digit growth due to market development activities. HUL strengthened category leadership in water segment. In a challenging durables market, Pureit delivered double digit growth, led by the solid performance of premium devices.
HUL said that the operating environment remained challenging with market growth further slowing down. Overall competitive activity remained high despite the lower media intensity in Q1 June 2014. Given this context, investments were sustained at competitive levels across segments with absolute A&P spends increasing by Rs 55 crore. Cost inflation continued to be managed through a mix of judicious pricing and cost savings, HUL said.
Harish Manwani, Chairman commented: We continue to grow ahead of our markets and have delivered another quarter of strong top and bottom-line performance. While we are seeing headwinds on market growth, consumer spending and inflation, we remain focused on managing the business for long term competitive and profitable growth and implementing our strategy with even greater rigor.
Hindustan Unilever (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.
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