Moneycontrol Bureau
Hindustan Unilever (HUL) matched street estimates on Friday with the fourth quarter profit rising 16.7 percent year-on-year to Rs 1,018 crore compared to Rs 872 crore in the year-ago period.
The bottomline was supported by exceptional gain of Rs 179.4 crore (against Rs 66 crore Y-o-Y) from the sale of properties/subsidiary and operational performance during the quarter but higher tax cost restricted growth in profits.
Total income from operations grew by 8.2 percent to Rs 7,675 crore during January-March quarter against Rs 7,094 crore in the same quarter last year with volume growth of 6 percent (against forecast of 4-7 percent).
"During the quarter, the domestic consumer business grew at 9 percent, with 6 percent underlying volume growth, both ahead of market," said the company in its filing.
Profit was estimated at Rs 958 crore on revenue of Rs 7,643 crore for the quarter, according to a CNBC-TV18 poll.
HUL continued to post double digit growth in its personal products, beverages (tea and coffee) and packaged foods.
"Soaps & detergents margin expanded to 13.3 percent in Q4 (against 12.06 percent Y-o-Y), personal products margin jumped to 27.8 percent (versus 25 percent) and beverages margin at 18.6 percent (against 18.76 percent)," said Harish Manwani, Chairman (while addressing press conference).
Operating profit climbed 22.3 percent year-on-year to Rs 1,318 crore and margin expanded by 200 basis points to 17.2 percent despite higher advertising expenses that increased by 22.3 percent Y-o-Y to Rs 1,027.9 crore. Analysts had estimated operating profit growth of 18.1 percent and margin expansion of 140 basis points for the quarter.
"Input costs were benign and this is reflected in the 310 basis points reduction in cost of goods sold. The margin for the quarter included a one-time credit of Rs 71.5 crore towards a favourable outcome for a contested matter on excise duty," HUL explained reason for operational performance.
Flat raw material cost (led by fall in crude oil prices) also helped the company post report operational performance. Raw material cost was up by 0.66 percent year-on-year to Rs 2,929.2 crore in the quarter gone by.
Tax expenses shot up 44.5 percent to Rs 507.4 crore during January-March quarter compared to Rs 351 crore in the corresponding quarter of last fiscal.
For FY15, the FMCG major's profit grew by 11.6 percent to Rs 4,315.3 crore and revenue increased by 9.9 percent to Rs 30,805.6 crore compared to previous year. HUL said the domestic consumer business grew by 10 percent with 5 percent underlying volume growth.
As far as FY16 outlook is concerned, Harish Manwani said it is too early to say how would trend pan out in FY16.
According to him, the rural area growth rate has been more than urban area.
The company has maintained its strong track record of cash generation as cash from operations exceeded Rs 5,000 crore for yet another year.
At 14:52 hours IST, the scrip of Hindustan Unilever was quoting at Rs 899, up Rs 33.30, or 3.85 percent amid high volumes on the BSE.
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