HUL beats estimates with Rs 787 cr Q4 profit; stock up on 6% growth in volumes

Hindustan Unilever reported a 15 per cent increase in net profit for the fiscal fourth quarter ended March 31, 2013, at Rs 787.20 crore, beating estimates. Sales grew 10.4 per cent year on year to Rs 6,367.14 crore in the quarter under review.

Shares in HUL rose 4.15 per cent to Rs 484.45 after the Q4 numbers were announced.

Volumes growth, which was a major area of concern for the consumer goods major, came in at 6 per cent as against analyst estimates of 5.25-5.5 per cent.

According to brokers polled by NDTV, India's largest consumer goods maker was estimated to report a 9.8 per cent year on year growth in net profit at Rs.730 crore. Net sales were estimated to have grown 9.6 per cent year on year to Rs. 6,319 crore.

During the quarter, the domestic consumer business grew at 13 per cent. Both home and personal care and foods and beverages registered double digit growth, HUL said in a statement today.

The HUL board has proposed a final dividend of Rs. 6 per share for the financial year ended March 31, 2013, subject to the approval of the shareholders at the annual general meeting. Together with the interim dividend of Rs 4.50 per share and a special dividend of Rs 8 per share, the total dividend for the financial year amounts to Rs. 18.50 per share.
 
"In a challenging environment, we have delivered broad based competitive growth and margin improvement. We have continued to invest in strengthening our brands, stepped up innovation and driven in-market execution and operational efficiencies even harder. At the same time, we are making good progress on our Sustainable Living Plan agenda," chairman Harish Manwani said in the statement.

"While there are near-term concerns around slowing market growth and inflationary pressures on consumers, we are confident of the medium- to long-term growth prospects of the FMCG sector, and remain focused on delivering consistent and competitive growth with sustainable operating margin improvement," Mr Manwani added.

The company, valued at Rs. 99,558 crore, makes popular brands including skin creams Fair and Lovely, Sunsilk shampoo, Lux soap and Kissan ketchup.

For the fiscal third quarter ended December 31, 2012, the Indian unit of Anglo-Dutch conglomerate Unilever said its net profit rose to Rs. 870 crore.