New Delhi: FMCG major HUL Monday reported 6.82 percent increase in standalone net profit to Rs 1,037.93 crore for the third quarter of current fiscal on account of strong exceptional income.
Hindustan Unilever Ltd (HUL) had posted net profit of Rs 971.66 crore in the October-December quarter of last fiscal.
Its exceptional income in the third quarter of 2016-17 was Rs 153.05 crore, as against exceptional expense of Rs 79.61 crore it had incurred in the same period of 2015-16.
"The gradual recovery of the market was temporarily impacted by adverse liquidity conditions. However, our performance demonstrated resilience and agility in this challenging environment, HUL Chairman Harish Manwani said in a statement.
"There are early signs of normalisation and our focus continues to remain on innovation led volume growth and improvement in margins. Our strategic agenda of delivering Consistent, Competitive, Profitable and Responsible growth remains unchanged," he added.
Its total income from operations declined 0.79 percent to Rs 8,317.94 crore in the quarter under review, compared with Rs 8,384.68 crore in the same period of last fiscal, the company said in a BSE filing.
In a conference call, HUL Chief Financial Officer P B Balaji said due to impact of demonetisation consumers' purchase basket size reduced and frequency in shop visits increased.
"There was varied impact across market and we expect a gradual improvement in the market in line with the liquidity improvement. South and West regions of the country were least impact while North and Central were most," Balaji added.
He said the company extended credit to its trade partners after demonetisation to help tide over liquidity crunch. It, however, did not hold back any planned investment or launches during the quarter.
During the quarter under review, HUL's revenue from home segment was up 1.02 percent at Rs 2,689.06 crore, while its revenue from personal products declined by 2.69 percent to Rs 3,980.17 crore.
The refreshment segment revenue was up marginally by 0.46 percent to Rs 278.5 crore and that from foods vertical grew by 8.14 percent to Rs 1,164.12 crore.
Revenues from other segments which include exports, water, infant care business declined by 27.33 percent to Rs 195.4 crore in the third quarter.
In a separate filing, HUL said it has appointed Dev Bajpai as Director on the Board of the company.
Bajpai was appointed as the Executive Director Legal and Company Secretary and as a member of the Management Committee of the company in May 2010.
HUL stock closed 0.25 percent up at Rs 863.25 on BSE.
Updated Date: Jan 23, 2017 18:22 PM