Mumbai5 hours ago
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- Its profit in June 2020 was Rs 1,897 crore.
- The stock is trading at Rs 2,490 with a gain of 3%
Leading fast moving consumer goods (FMCG) company Hindustan Unilever Limited (HUL) has reported a profit of Rs 2,061 crore in the June quarter. This profit is 10% higher than the same quarter a year ago. Its profit in June 2020 was Rs 1,897 crore.
However, the margins of the company have declined. The company’s stock was trading at Rs 2,490 with a gain of 3% in the afternoon.
Result was as expected
The company released the financial results for the April-June quarter on Thursday. Its result has been in line with analysts’ estimates. The company’s revenue from soap to shampoo has grown by 13% on a yearly basis. It has been Rs 11,915 crore. It was Rs 10,570 crore in June 2020. However, compared to the March quarter, there has been a decline in both its revenue and profit. Its revenue in March was Rs 12,542 crore while profit was Rs 2,186 crore.
Consumer growth stood at 12%
The company said that its domestic consumer growth has been 12% year-on-year. Its volume growth has been up 9%. The company’s performance across all the three divisions has been as per expectations. It has been in double digits. The company said that our business fundamentals have been strong. Growth in top line revenue has been faster in its foods and refreshments and personal care segments. These segments have grown by more than 10%.
Margins affected by higher commodity prices
The margins of the company, however, have been affected. Its margins have declined by 1.10% and stood at 24%. This is because the commodity prices have been rising in recent times. Company’s Chairman Sanjiv Mehta said that going forward, we are optimistic about the continued demand recovery. Our focus is on volume lead competitive growth and healthy margins.
12,235 crore revenue in December quarter
Its revenue in the December quarter was Rs 12,235 crore while profit was Rs 1,937 crore. Its revenue in the September quarter was Rs 11,776 crore and profit was Rs 1,974 crore. The company’s total expenditure in the first quarter of the financial year 2020-21 was Rs 9,546 crore as against Rs 8,324 crore a year ago.