Hindustan Unilever Q1FY17 net profit grows by 10% to Rs. 1,173 crore

FMCG major Hindustan Unilever on Monday reported standalone net profit of Rs. 1,173.90 crore for the June quarter ended (Q1FY17),witnessing growth of 9.79% yoy and 5.42% qoq. This was aided by one-time write back of provision for pension benefits arising from plan amendments.  

Total Income for the company stood at Rs. 8,128.18 crore, increasing by 3.61% yoy and 5.27% qoq.

In terms of volume growth, HUL failed to meet the expectation by recording 4% growth compared to Zee Business estimates of 5-6%.

Harish  Manwani, Chairman of HUL said, "In slowing market conditions, the business is tracking ahead of the market with sustained margin improvement. We continue to make progress on our priorities of strengthening the core of our business whilst driving operational efficiencies. While the near term market growth is likely to remain muted, we are optimistic for the medium term and remain focused on driving competitive and profitable growth."

The company’s operating profit (EBITDA – earnings before interest tax depreciation and amortization) was around Rs. 1,635.89 crore, rose by 8.19% yoy and 11.26% qoq. It’s OPM (operating profit margin) was at 20.12%, expanding by 85 bps (basis points) yoy and 108 bps qoq.

Lower cost inputs registered in 100 bps drop in COGS (cost of goods sold). The company’s brand investment was maintained at competitive level across sectors. 

Soon after the results were announced the share prices of Hindustan Unilever Limited slumped by 24.70 points or 2.63% at Rs. 914.90.