FMCG major HUL posts 14 pct rise in Q1FY20 PAT
HUL posted a net profit of Rs 1,755 crore in Q1FY20, which was up by 14.10% from Rs 1,529 crore a year ago same period.
FMCG major Hindustan Unilever Limited (HUL) announced its June 2019 (Q1FY20) quarterly result on Monday, in-line with analysts' estimates. The top-line growth was on a single-digit note, but the bottom-line performance managed to secure double-digit rise. HUL posted a net profit of Rs 1,755 crore in Q1FY20, up by 14.10% from Rs 1,529 crore a year ago during the same period. Also, Q1FY20 PAT was up by 10.13% compared to Rs 1,538 crore in Q4FY19. A Bloomberg poll of analysts had predicted HUL PAT to come around Rs 1,720 crore during the quarter. Ahead of the result, HUL shares ended at Rs 1693.20 per piece gradually up by 0.86% on Sensex.
HUL's revenue from operation soared by 6.71% to Rs 9.984 crore in Q1, compared to Rs 9,356 crore in Q1FY19. In preceding quarter, revenue was at Rs 9,809 crore. Sanjiv Mehta, Chairman and Managing Director commented: Against the backdrop of moderate market growth, HUL has delivered a resilient performance driven by expansion of our consumer franchise, improvement in portfolio mix and sustained growth in margins. Our focus on strengthening the core, leading market development & premiumisation, driving channel transformation and building brands with purpose, continues to serve us well."
Meanwhile, total income came in at Rs 10,261 crore up by 6.64% from Rs 9,622 crore in Q1FY19. While total income sequentially rose by 1.96% from Rs 10,063 crore in Q4FY19.
As for total expenses, HUL recorded a 4.54% growth to Rs 7,705 crore in Q1 versus Rs 7,370 crore in Q1FY19. However, total expense plunged by 0.77% from Rs 7,765 crore in Q4FY19.
Mehta added, "We continue to make good progress on our strategic initiatives to make sustainable living common place and build a business which is purpose led and future fit. We have received approval from our Shareholders and Creditors for the proposed merger with GSK CH and subject to NCLT approvals, are on track to complete the integration of the business before the end of 2019. We believe our business is well positioned to unlock the structural FMCG India opportunity as well as in terms of navigating the short-term challenges arising from softening of growth."
Margin expansion was driven by improved mix, leverage in operating and advertising spends and our savings agenda. Earnings before interest, tax, depreciation and amortization (EBITDA) at Rs. 2647 Crores was up by 18% (13% on comparable basis after adjusting for accounting impact of Ind AS 116).
Get Latest Business News, Stock Market Updates and Videos; Check your tax outgo through Income Tax Calculator and save money through our Personal Finance coverage. Check Business Breaking News Live on Zee Business Twitter and Facebook. Subscribe on YouTube.
RECOMMENDED STORIES
Power of Compounding: How many years will it take to reach Rs 3 crore corpus if your monthly SIP is Rs 4,000, Rs 5,000, or Rs 6,000
Power of Compounding: Salary Rs 25,000 per month; is it possible to create over Rs 2.60 crore corpus; understand it through calculations
Liquor stock under Rs 300: Can this smallcap scrip double your money in 1-2 years? Check targets by Anil Singhvi
Reduce Home Loan EMI vs Reduce Tenure: Rs 75 lakh, 25-year loan; which option can save Rs 25 lakh and 64 months and how? Know here
05:35 PM IST