Hindustan Unilever Ltd (HUL) on Thursday reported a flattish net profit at Rs 2,657 crore for the quarter ended September 30, with an underlying volume growth at 2 per cent, the lowest in seven quarters.
The FMCG giant had posted a consolidated net profit of Rs 2,670 crore in the corresponding quarter of the previous fiscal.
While the net profit was in line with Street estimates, revenues stood at Rs 15,340 crore compared with Rs 14,872 crore in the year-ago period.
The tepid numbers came as the demand for some products was affected by rising inflation.
The quarter also saw advertising and promotion spending rising to Rs 1,742 crore on a consolidated basis from Rs 1,053 crore in the corresponding quarter of the previous fiscal.
HUL said its board has approved an interim dividend of Rs 18 per share with a face value of Re 1 for the financial year ending March 31, 2024.
Rohit Jawa, chief executive officer and managing director, said the company delivered resilient and competitive growth in a challenging operating environment that was marked by subdued rural demand and heightened competitive intensity.
HUL said in a presentation that while volume in the urban market grew 3 per cent, it was -1 per cent in the rural areas.
“Looking forward we remain cautiously optimistic. FMCG demand is likely to continue a gradual recovery with tailwinds from the upcoming festive season, sustained buoyancy of services and government’s thrust on capex,” Jawa said.
Segment watch
The company’s sales in the home care segment grew 3 per cent on a very high base at Rs 5,312 crore.
Fabric wash saw mid-single-digit volume growth with the premium portfolio continuing to outperform, HUL said.
On the other hand, the beauty and personal care category saw mid-single digit volume-led growth, while foods & refreshment saw a growth of 4 per cent.