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Hindustan Unilever Ltd (HUL), the largest FMCG manufacturer in the country reported its quarterly financial report for the December-end quarter with the slowest profit growth over a year. HUL reported a net profit of Rs 1,444 crores in the quarter under discussion, registering a 9 per cent year-on-year rise as compared to the net profit of Q3 FY18.
HUL, however, recorded a double-digit volume growth in revenues for the fifth straight quarter at 11.3 per cent. HUL total revenue for the October-December quarter stood at Rs 9,558 crores. HUL reported their EBITDA (earnings before interest, tax, depreciation and amortisation) at Rs 2,046 crores, which rose by 21.8 per cent year-on-year basis.
Srinivas Pathak, Chief Financial Officer, HUL in a press meet said “Mixed improvement and operating leverage contributed to the margin expansion. The consumer demand was stable during the quarter. The rural demand is ahead of the urban.” He added, “Our focus remains on volume-driven growth and improvement in operating margin.”
According to the company’s statement, the operating margin during Q3 FY19 expanded to 21.4 per cent from 19.6 per cent. Segment wise, home care revenue inclined by 14.8 per cent to Rs 3,148 crore; food and refreshment revenue increased by 9.9 per cent to Rs 1,728 crores; revenue from the beauty and personal care segment surged 10.9 per cent to Rs 4,539 crore.
