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HUL Q2 profit rises 8.7% to Rs 2,009 crore, operating earnings beat estimates

Revenue from operations increased 16.1 percent to Rs 11,442 crore in Q2FY21, compared to Rs 9,852 crore in corresponding period last fiscal.

October 21, 2020 / 09:05 PM IST

Hindustan Unilever, the FMCG major, has reported profit of Rs 2,009 crore in the quarter ended September 2020, rising 8.7 percent compared to Rs 1,848 crore in same period last year.

Revenue from operations increased 16.1 percent to Rs 11,442 crore in Q2FY21 compared to Rs 9,852 crore in corresponding period last fiscal.

Underlying domestic consumer business sales (excluding the impact of business combinations) grew by 3 percent in September quarter, company said in its BSE filing.

HUL had merged GSK Consumer Healthcare India with effect from April 2020. Hence the results are not comparable on YoY basis.

"The operations and service levels are now back to pre-COVID levels and we have accelerated the pace of digitising operations under the 'Re-imagine HUL' agenda," Sanjiv Mehta, Chairman and Managing Director said.

"Rural markets have been resilient but the demand in urban India especially in metropolitan cities has been muted. We believe that the worst is behind us and we are cautiously optimistic on demand recovery," he added.

Among sectors, Foods & Refreshment segment registered a 83 percent YoY growth in revenue at Rs 3,379 crore with its EBIT rising 90 percent and margin expanding 60 bps YoY.

Beauty & personal care division reported a 0.2 percent year-on-year decline in revenue at Rs 4,535 crore, but its EBIT increased 1 percent with margin expansion of 40 bps YoY.

HUL showed a 1.6 percent YoY decline in Home Care segment revenue at Rs 3,318 crore, but EBIT increased 13.9 percent and margin rose 280 bps compared to year-ago period.

Company's earnings before interest, tax, depreciation and amortisation (EBITDA) for the quarter at Rs 2,869 crore grew by 17 percent YoY and margin improved by 30 bps compared to September quarter 2019.

The CNBC-TV18 poll estimates for EBITDA and margin were at Rs 2,750 crore and 24.6 percent for the quarter.

"Strong savings funnel, judicious and calibrated pricing in Tea, synergies in nutrition have enabled to successfully manage headwinds of commodity inflation and adverse mix. We have significantly increased investments behind brands and spends continue to be competitive," HUL said.

HUL said exceptional items during September quarter 2020 included restructuring expenses of Rs 69 crore, acquisition and disposal related cost of Rs 17 crore and profit from sale of surplus properties Rs 5 crore.

The company has declared an interim dividend of Rs 14 per share for the period ended September 2020.

The stock was trading at Rs 2,164, down 0.68 percent on the BSE at 14:58 hours IST.

Moneycontrol News
first published: Oct 20, 2020 02:33 pm