NEW DELHI: Amid a slowdown in consumption space, FMCG major Hindustan Unilever Limited (HUL) reported a volume growth of 5 per cent as of June - its lowest since the third quarter of FY 2017-18. Revenue from sales and consumer business grew by 7 per cent during the quarter, the company said in a regulatory filing on Tuesday.
A sharp pullback in spending by rural companies, coupled with a base effect of Soods and services rate cut in the previous quarters, have resulted in the fall in volume growth, the company said. “But then, it’s not a train wreck as it is still a decent growth for a company of our size,” said Sanjiv Mehta, chairman and managing director of HUL.
The company’s net profit rose 14.9 per cent year-on-year (YoY) to Rs 1,755 crore during the quarter under review, owing to its shift towards natural products and increasing premiumisation. Revenue from operations rose 6.7 per cent YoY to Rs 9,984 crore, while the cost of materials consumed fell 6.5 per cent from a year ago to Rs 3,161 crore.
“Against the backdrop of moderate market growth, HUL has delivered a resilient performance, driven by expansion of our consumer franchise, improvement in portfolio mix and sustained growth in margins,” Mehta said. “Our focus on strengthening the core, leading market development and premiumisation, driving channel transformation and building brands with purpose continue to serve us well,” he added.
Segment-wise, revenue of home care segment increased 10 per cent to Rs 3,464 crore, while beauty & personal care and food & refreshment grew 4.14 per cent and 9.37 per cent respectively. EBITDA came at Rs 2,647 crore, up 18 per cent on a yearly basis.
HDFC Life Q1 net profit rises 12% to Rs 425 crore
New Delhi: HDFC Life on Tuesday reported an increase of 12 per cent in its standalone net profit to Rs 425 crore in the first quarter ended June 30. The insurer had posted a net profit of I380 crore during the same quarter of last year. Total premium rose 29 per cent to Rs 6,536 crore during Q1FY20 against Rs 5,058 crore a year ago, HDFC Life said.