FMCG major Hindustan Unilever (HUL)'s net profit rose 9.79% to Rs 1173.90 crore on 3.36% growth in total income to Rs 8235.77 crore in Q1 June 2016 over Q1 June 2015. The result hit the market during the fag end of trading hours yesterday, 18 July 2016.
During the quarter, against the backdrop of a challenging environment where market growth further slowed down in both volume and value terms, the business continued to track ahead of market with sustained margin improvement. Domestic Consumer business growth was at 4%, with 4% underlying volume growth and operating margin expanded by 70 bps. The growth was broad based across the segments.
Lower input costs resulted in 100 bps reduction in Cost of Goods Sold. Brand investments were maintained at competitive levels across segments. Profit before interest and tax (PBIT) grew by 7% and PBIT margin improved by 70 bps in Q1 June 2016 over Q1 June 2015. Profit after tax before exceptional items, PAT (bei), grew by 6% to Rs.1128 crore in Q1 June 2016 over Q1 June 2015. Net Profit rose aided by a one-time write back of provision for pension benefits arising from plan amendments.
HUL also announced a key change in the Management Committee of the company. Punit Misra, currently Executive Director and Vice President, Sales and Customer Development, has decided to leave Hindustan Unilever to pursue an external opportunity. Srinandan Sundaram, currently Vice President, Skin Care, will take over from Punit as the Executive Director, Sales & Customer Development, and will join the HUL Management Committee. The change will be effective from 1 September 2016.
Separately, HUL has proposed to make an investment of about Rs 1000 crore towards the setting up of a new manufacturing unit in the vicinity of its existing factory premises in Doom Dooma, Assam. This investment is subject to receipt of requisite approvals and clearances. The new unit that is envisaged to be commissioned in early 2017, will augment the production capacity of Personal Care products for HUL.
HUL has a manufacturing facility in Doom Dooma Industrial Estate of Upper Assam. The facility was originally set up in 2001 and currently houses three manufacturing units that produce Personal Care products (shampoo, skin creams and toothpaste).
The Government of Assam has been looking at attracting investment into the state by offering favourable policies that encourage and incentivise companies to set up manufacturing units. With over 15 years of operating experience in the state and considering the support from the State Government and the local community, HUL has decided to set up the new manufacturing unit in Assam.
It is also intended to encourage suppliers to establish units for packing material supplies and it is expected that the new unit will lead to the creation of ancillary, logistics and warehousing opportunities within the region. The proposal is consistent with HUL's commitment to Make in India and a reflection of its priority to invest for sustained growth. Given the attractive outlook that the Company sees in Personal Care, the additional capacity will support the growth ambition and enable the business better serve its consumers. HUL has a wide footprint of manufacturing operations with over 30 factories located across India.
UltraTech Cement and Wipro will announce Q1 results today, 19 July 2016.
Yes Bank announced before market hours today, 19 July 2016 that global credit rating agency, Moody's Investor Service, vide its credit opinion dated 18 July 2016, has maintained its long term rating on Yes Bank at Baa3/P-3 with stable outlook. Moody's has consistently maintained a rating of Baa3/P-3 with stable outlook since its initial coverage on the bank in November 2010.
JSW Energy announced after market hours yesterday, 18 July 2016 that the company has agreed to acquire the 500 MW thermal power plant located at Bina, District Sagar in the State of Madhya Pradesh from Jaiprakash Power Ventures. The company has agreed to consider acquisition of 100% equity in Minerals & Energy Swaziland (Pty) Limited.
Jaiprakash Power Ventures reported net loss of Rs 196.16 crore in Q1 June 2016 compared with net profit of Rs 66.96 crore in Q1 June 2015. Total income fell 39.96% to Rs 767.45 crore in Q1 June 2016 over Q1 June 2015. The result was announced after market hours yesterday, 18 July 2016.
The results for Q1 June 2016 are in respect of 400 megawatts (MW) Jaypee Vishnuprayag H.E. Plant, 500 MW Jaypee Bina Thermal Power Plant, 1320 MW Jaypee Nigrie Super Thermal Power Plant (JNSTPP), Jaypee Nigrie Cement Grinding Unit and Amelia (North) Coal Mine. The Q1 June 2015 results also included operating results for 300 MW Baspa II H.E. Plant and 1091 MW Karcham Wangtoo H.E. Plant. The company concluded the sale of these plants to JSW from 1 September 2015, hence the figures of the current quarter/ period are not comparable with figures of the corresponding quarter/ period in the previous year. The company now has aggregate power generation capacity of 2220 MW comprising of Hydro (400 MW).
Tata Steel said it will seek shareholder approval at an annual general meeting (AGM) on 12 August 2016, to issue non-convertible debentures on private placement basis worth Rs 10000 crore. The announcement was made after market hours yesterday, 18 July 2016.
Dabur India announced after market hours yesterday, 18 July 2016 that the company's wholly owned subsidiary - Dabur International has acquired 100% share capital of a new company namely 'DISCARIA TRADING (PTY) LTD in South Africa on 14 July 2016. Accordingly 'DISCARIA TRADING (PTY) LTD' has become a step down wholly owned subsidiary company of Dabur India from 14 July 2016.
Exide Industries' net profit rose 25.9% to Rs 196.05 crore on 11.67% rise in total income to Rs 2025.35 crore in Q1 June 2016 ove Q1 June 2015. The result was announced after market hours yesterday, 18 July 2016.
Piramal Enterprises announced before market hours today, 19 July 2016 that a meeting of the Administrative Committee of the Board of Directors of the company will be held on 21 July 2016 to consider and approve the issue of secured non-convertible debentures amounting upto Rs 1000 crore on private placement basis.
Byke Hospitality announced after market hours yesterday, 18 July 2016 that the company's one of the hotels "The Byke- Suraj Plaza" Thane (Maharashtra) has acquired wedding garden measuring approx 20000 square feet situated next to The Byke-Suraj Palza, Saibaba Vihar Complex, Godbunder Road, Anand Nagar, Thane West, Maharashtra.
Ballarpur Industries announced after market hours yesterday, 18 July 2016 that India Ratings & Research (a Fitch Group Company) has revised the long-term issuer rating (including non-convertible debentures) from "IND A+" to "IND A-" and short-term issuer rating from "IND A1+" to "IND A1" of the company, while maintaining the rating on Rating Watch Evolving.
Camlin Fine Sciences announced after market hours yesterday, 18 July 2016 that the State Level Environment Impact Assessment Authority, Gujarat at its meeting held on 16 July 2016 has granted the environmental clearance to the company for setting up a manufacturing facility for Hydroquinone/ Catechol and its down-stream products at Dahej Sez, Bharuch District, Gujarat. The environmental clearance was granted with all the conditions recommended by the State Level Expert Appraisal Committee.
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