Thu. Mar 28th, 2024
Hindustan Unilever

Consumer goods company Hindustan Unilever on Tuesday posted its quarterly earnings with an 8.86 per cent year-on-year rise in standalone net profit settling at Rs 2,187 crore In the second quarter of the financial year 2021 (Q2FY22) against Rs 2,009 crore in the corresponding quarter last year. On a quarter-on-quarter (QoQ) basis, the figure rose by 6.11 per cent over Rs 2,061 crore.

Its revenue from operations came in at Rs 12,516 crore in the quarter ended, up 10.99 per cent YoY, whereas it posted Rs 11,276 crore in the same period last fiscal.

Net profit and revenue met the analysts’ projections who estimated the net profit growth between 8-10 per cent and revenue growth in the range of 10-15 per cent. 

HUL  delivered a strong performance, witnessing Domestic Consumer Growth of 11% and Profit After Tax (PAT) growth of 9%. “Performance was broad-based with all 3 divisions growing competitively. Business fundamentals remained strong with more than three-fourths of the business gaining market share and penetration,” the company said in a statement. 

On the basis of segment, the home care segment surged 15 per cent, the beauty and personal care segment saw a rise of  10 percent and the food & refreshment segment delivered a 7 percent increase.

The earnings before interest, tax, depreciation and amortisation (EBITDA)  for the quarter ended stood at Rs 3,132 crore versus Rs 2,869 crore prior-year period. The EBITDA margin declined 40 bps YoY to 25 per cent.

“We continue to invest behind building our brands, portfolio and future-fit capabilities. Our focused actions on Net Revenue Management and savings have enabled us to manage inflationary pressures and deliver a healthy bottom-line performance,” the company said in an exchange filing.

The Board of Directors agreed upon an interim dividend of Rs.15/- per share for the year ending 31st March 2022.

Sanjiv Mehta, Chairman and Managing Director said: ‘September quarter witnessed a sequential improvement in trading conditions, albeit remained challenging with unprecedented levels of input cost inflation and subdued consumer sentiments. In this backdrop, we have delivered a strong performance growing topline in double digits and stepping up profitability sequentially. Large parts of our business continue to gain market shares and penetration. Calibrated price increases and laser-sharp focus on savings have helped us protect our business model while ensuring the right price-value equation for our consumers. Through our ‘Re-Imagine HUL’ programme, we have further strengthened the digital capabilities across our organisation. We are making significant progress in our sustainable living journey. We are on track to collect and process more plastic waste than we sell in our packaging this year through our network of partners.

Looking forward, we remain cautiously optimistic about demand recovery. In these times of uncertainty and unprecedented input cost inflation, we continue to firmly focus on delivering Consistent, Competitive, Profitable and Responsible Growth.’, Mehta added.

Following the declaration of its q2 earnings, the stock plummeted as much as 3 percent on the NSE. At 1510 hours, it was trading at Rs 2483.55, down 2.51% from the previous day’s close of Rs 2546.80.

By Harshita Sharma

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