Consumer goods maker Hindustan Unilever (HUL) on Monday reported a steep spike in its net profit, the highest in 11 quarters, sending its shares up 8% to end the day at a lifetime high of Rs 375 on Bombay Stock Exchange.
Despite volatile market conditions, HUL saw a 21% growth in its quarterly profit, mostly from volume growth and price hikes. Net sales grew 18% to Rs 5,522 crore over the same quarter a year ago. All this despite the rupee depreciation and a 25-40% surge in input costs from a year ago.
“FMCG market grew in double digits and for us growth has been broad based, and ahead of market,” said R Sridhar, chief financial officer, HUL.
During the quarter, HUL’s domestic consumer business grew at 18.5% with underlying volume growth of 9.8%. Soaps and detergents grew by 21.8%, personal products by 18.2% and food and beverages — where HUL is carrying out numerous (and successful) experiments — registered 21% and 15% growth respectively.