India’s largest fast-moving consumer goods company Hindustan Unilever on Monday posted a 2% year-on-year decline in net profit at Rs 569.2 crore for the quarter ended March as high inflation coupled with rising input costs hit profits.
The soaps-to-sauce manufacturer maintained volume growth despite price hikes due to higher input and raw material costs. Net sales during the January-March quarter grew by 13.5%.
“The results is above market expectation as the growth numbers are positive. The company had indicated it will maintain volume growth and delivered double-digit growth across categories,” said Himani Singh, research ananlyst and product strategy, Elara Securities.
Domestic consumer business (FMCG and water) grew by 13.8%, while the home and personal care segment grew 13.6%. The foods business, which saw a couple of launches during the quarter including Kissan Fruit, grew 15.4% during the quarter.
Consumption of raw/packing material went up by 18% to Rs 2,104.9 crore during the quarter while the purchase of goods went up by 11% to R748 crore.
The company recommended a final dividend of Rs 3.5 per share on equity shares of R1 each.
{{/usCountry}}The company recommended a final dividend of Rs 3.5 per share on equity shares of R1 each.
{{/usCountry}}For the full year, the company, however, maintained volume growth. Net sales for the full year jumped 10.8% to Rs 19,691.0 crore while net profit surged 6.5% to Rs 2,296.0 crore.
Meanwhile, the company’s board approved a proposal to spin off its FMCG exports business, including specific exports-related manufacturing units of the company into its wholly-owned subsidiary Unilever India Exports Ltd, with effect from April 1.