Hindustan Unilever's Q4 profit rises 7% to Rs 1,090 crore

FMCG major Hindustan Unilever on Monday reported a 7.02 per cent increase in its standalone net profit at Rs 1,089.59 crore for the three months to March, after witnessing decline in the previous two quarters. The company had posted a net profit of Rs 1,018.08 crore in the January-March quarter of the preceding fiscal, HUL said in a statement. 

HUL's net sales during the quarter were Rs 7,809.40 crore, up 3.36 per cent, as against 

Rs 7,555.00 crore in the year-ago period. For the year ended March 2016, HUL's consolidated net profit was down 6.43 per cent to Rs 4,082.42 crore against Rs 4,363.08 crore  last fiscal. 

Consolidated net sales for FY 2015-16 increased 4.11 per cent to Rs 32,482.72 crore as against Rs 31,199.72 crore a year ago. Commenting on the performance, HUL Chairman Harish Manwani said: "In challenging markets and a deflationary cost environment, we have delivered another year of competitive and profitable growth. The consistency of our performance is a result of managing our business dynamically, and executing our strategy with even greater rigour and discipline." He further said: "Our sustained focus on investing behind brands, sharpening our executional capabilities and driving market development has enabled us to keep winning with consumers in a rapidly changing market."

During the quarter under review, the company said its domestic consumer business grew at 4 per cent. Growth was, however, impacted by the phasing out of Excise Duty incentives, a one-time credit for excise duty refund in the base quarter and marginal price de-growth. Expenses in period were up 2.15 per cent at Rs 6,566.36 crore, as against Rs 6,427.97 crore a year ago. During the quarter, revenue from soaps and detergents segment was up 2.14 per cent at Rs 3,752.50 crore, as against Rs 3,673.71 crore a year ago. 

"The quarter witnessed price deflation in this segment, albeit at lower levels, arising from actions taken earlier to pass on the benefit of lower commodity costs to consumers," said HUL.