Bit of mkt erosion in shampoo & tea biz: HLL

Hindustan Lever, HLL has declared its first quarter results. The company has posted net profit (Pre Extraordinaries) of Rs 333.86 crore (Rs 3.33 billion) in first quarter compared to Rs 294 crore (Rs 2.94 billion) in corresponding quarter of previous year and net profit (Post Extraordinaries) at Rs 392.8 crore (Rs 3.92 billion) versus Rs 442.9 crore (Rs 4.42 billion).

D. Sundaram, the Finance & IT Director, HLL said that the top line has grown by 14.7%, while the food business has grown 23%. The company has registered a good growth from rural markets, he said. The personal products have grown by 10.8%.

He informed that the company's EBIT is up 13.7% and added that HLL has Maintained an EBIT margin of 11.9%.

There has been a 17.5% growth in advertising and promotions, he said.

The material cost outlook continues to be inflationary, particularly on the vegetable palm oil front, he said. The company will enforce judicious price increases when needed, he added.

One-third of the company's growth has come from underlying increase in volumes. There has been a little bit of market erosion in the shampoo & tea business, Sundaram said.

More to come...