MUMBAI: Led by lower expenses, FMCG major Hindustan Unilever Ltd (HUL) on Wednesday reported a 16.42 per cent increase in its standalone net profit at Rs 1,276 crore for the quarter ended September 2017 against Rs 1,096 crore year-ago period.
Expenses were down 5.9 per cent at Rs 6,748 crore compared with Rs 7,175 crore during the July-September 2016 quarter. Net sales, however, fell marginally by 1.63 per cent at Rs 8,199 crore during the quarter compared to Rs 8,335 crore last fiscal.
“In a challenging business environment, we delivered a particularly strong overall performance. This reflects the strength of our brands and our relentless focus on execution in the market place,” said Harish Manwani, chairman, HUL.
According to the company, retailers and distributors restocked after cutting back on inventories in the run up to GST. “While transition to GST impacted trade purchases in the early part of the quarter, consumer offtake remained stable. Trade conditions to improve and the wholesale channel is steadily normalising,” it said.
The fast-moving consumer goods major had also undertaken 3-4 per cent price cuts during the quarter to pass on the benefits of lower taxes under GST and the company expects a gradual improvement in rural demand going forward, added Sanjiv Mehta, CEO of HUL.