HUL net doubles on land sales | business | Hindustan Times
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HUL net doubles on land sales

business Updated: Jul 23, 2012 21:33 IST
HT Correspondent
HT Correspondent
Hindustan Times

India’s largest consumer goods firm Hindustan Unilever (HUL) on Monday said its net profit for the quarter ended June more than doubled, up 112% at Rs 1,331crore, aided by land deals.

Riding on the back of improved rural penetration and growing modern trade sales contribution, the company, which makes soaps and detergents, saw its revenues surge 13.7% to Rs 6,250 crore during teh quarter under review.

“In a challenging environment we have delivered strong growth ahead of the industry,” said R Sridhar, CFO, HUL. “We managed inflation through judicious pricing.” Other income went up 212.3% quarter-on-quarter to Rs 218.6 crore. Exceptional items stood at R604.7 crore in the first quarter of FY’13 as against Rs 26 crore in the year-ago period.

During the quarter, HUL saw its domestic consumer business grow 19% with volume growth of 9%. Soaps and detergents grew 24% to Rs 3,163 crore. Personal products’ revenues declined by nearly 26% year-on-year to Rs 1,247 crore in the quarter ended June 2012, but earnings before interest and taxes (EBIT) rose 15.8% to Rs 475.7 crore.

Beverages' revenue grew 7.4% to Rs 654 crore and EBIT shot up by 1126.8% to Rs 925 crore.

The company saw its sales surge 13% to Rs 22,116 crore and profit surged 21% at Rs 2,599 crore for 2011-12 period.

In the beginning of April, HUL and entities of Piramal Realty (Ajay Piramal Group) had signed an agreement for assignment of HUL’s leasehold rights of the land and building named Gulita situated at Worli Sea Face, Mumbai, for a transaction value of Rs 452.5 crore. The company also had its annual general meeting for 2011-12 on Monday. Addressing the shareholder, HUL’s chairman Harish Manwani emphasised the company’s focus on rural India.

“Rural India is an incredible opportunity of potentially adding $1.8 trillion to our economy, equal to current GDP,” said Manwani. “More than 40% of our products are consumed in the fast growing markets of rural India and we'll build this further.”