Shares of FMCG major Hindustan Unilever
(HUL) gained in the morning trade post Q2FY20 numbers. The company’s consolidated net profit rose 21% at Rs1,848cr after incorporating the reduction in Corporate Tax rate. The company’s revenue was up 6.7% to Rs9,852cr.
Domestic Consumer Growth was 7% with Underlying Volume Growth at 5%, the company said.
EBITDA stood at Rs2,443cr was up by 21% (16% on a comparable basis after adjusting for accounting impact of Ind AS 116).
The company’s margin expansion was driven by improved mix, benign commodity price movement in the large segments and our savings agenda, the company stated.
The Board of Directors has declared an interim dividend of Rs11 per share for the year ending March 31, 2020.
Sanjiv Mehta, Chairman and Managing Director commented, “amidst a challenging market environment, HUL has delivered another quarter of resilient performance and sustained margin improvement. Our focus on consumer value, excellence in execution and market development continues to serve us well. The near-term outlook for demand especially in rural India remains challenging. We welcome the various measures announced by the Government and the Reserve Bank of India to spur investment and improve liquidity and are confident that the government will take all necessary steps for higher-income transference to rural India.”
“HUL remains well-positioned to unlock the structural FMCG India opportunity while navigating the short-term challenges. We continue to progress our ‘purpose-led and future-fit’ agenda which is underpinned by our sustainability initiatives and ‘Re-imagining HUL’ driven by leveraging data and technology in all aspects of our operations,” Sanjiv Mehta added.
Hindustan Unilever Ltd is currently trading at Rs2,045.95, up by Rs31.25 or 1.55% from its previous closing of Rs2,014.70 on the BSE.