HUL Q3 PAT rises 17% YoY at Rs 2,243 cr

20 Jan 2022 , 04:13 PM

The companys profit before tax grew 16.49% year on year to Rs 3,024 crore in Q3 FY22 from Rs 2,596 crore in Q3 FY21.

Total expenses rose 8.28% to Rs 10,093 with cost of materials consumed increasing 13.30% to Rs 3,875 crore during the period under review.

Hindustan Unilever (HUL) said that business fundamentals remained strong with handsome market share gains in all its divisions, both urban and rural markets and across price segments.

Underlying domestic consumer business sales grew by 11%. Underlying volume growth at 2% was significantly ahead of the market.

Earnings before interest, tax, depreciation and amortization (EBITDA) for the quarter at Rs 3,279 crore, grew by 15%. EBITDA margin at 25.4% improved by 100 bps versus the same quarter last year.

Home Care growth at 23% was broad based with strong performance in fabric wash and household care. Beauty & Personal care grew 7% led by skin cleansing, skin care and colour cosmetics. Foods & Refreshment grew 3% on a very high prior year comparator, driven by solid performance in tea and ice-creams.

The company said that in the context of unprecedented inflation, it continues to manage its business dynamically driving savings harder across all lines of P&L and taking calibrated pricing actions using the principles of net revenue management. HUL said it continues to invest competitively behind its brands.

Sanjiv Mehta, chairman and managing director commented: We have delivered a strong and resilient performance in the quarter despite moderation in market growths and significant levels of commodity inflation. I am particularly pleased that the growth is extremely competitive with our market share gains being highest in more than a decade. In the near-term, operating environment will continue to remain challenging. In this scenario, we will manage our business with agility, continue to grow our consumer franchise whilst maintaining our margins in a healthy range. We remain confident of the medium to long term potential of Indian FMCG sector.

HUL manufactures branded and packaged consumer products including soap, detergent, personal care products and processed food.

Shares of HUL fell 2.13% at Rs 2261.60 on BSE.

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