Hindustan Unilever Q3 profit rises 28% to Rs1,326 crore

Hindustan Unilever Q3 profit seen up 11%, volume growth may be around 8-9%

Hindustan Unilever Q3 profit seen up 11%, volume growth may be around 8-9%

Total income during the quarter under review stood at Rs 8,742 crore as against Rs 8,400 crore in the year-ago period, up 4 per cent, it added.

"Domestic Consumer Growth was 17% and underlying volume growth was 11% in Q3FY18".

HUL saw double digit volume growth across categories under home care segment, a company statement said. With this, margins were seen expanding by 150-300 points and the profit growth was expected to be between 18-27 per cent for the quarter. It was up in personal care, foods and refreshment segments. "Growth in skin care was driven by the strong performance of Fair & Lovely", the company said. "The purifiers business saw the launch of air purifiers under the Pureit brand", the company said.

The personal care segment rose 2.76 per cent to Rs 4,090 crore against Rs 3,980 crore in the corresponding previous period, led by key brands such as Dove and Pears. Its Knorr brand too had a strong performance in soups. However, the company was not able to pass on the entire benefit of this rate reduction on some of the pipeline stocks during the transition. HUL says it has proactively disclosed to the CBEC an amount of Rs 119 crore on this count and has offered to pay it suo motu to the government.

"For future growth, Manwani said, "We remain positive about the mid-term outlook of the industry and will continue to invest strongly in our core brands and developing categories of the future". This amount has not been recognised as revenue on the HUL's books and is accounted for as a liability. "There are early signs of commodity cost inflation and we will further sharpen our focus on cost effectiveness programmes and manage our business dynamically", he said.

Shares of Hindustan Unilever closed down 0.68%.

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