HUL Q3 Results: Profit jumps 12% YoY to Rs 2,505 crore, meets estimates

Hindustan Unilever (HUL) on Thursday reported a standalone net profit of Rs 2,505 crore for the December quarter, up 12% over the corresponding period of last year. The company had posted a profit of Rs 2,243 crore in the last year period.

On a sequential basis, net profit is down about 4%, compared with Rs 2,616 crore in the September quarter. ET Now poll had pegged the profit figure at Rs 2,504 crore.

HUL flagged moderation in inflation during the quarter under review, albeit it remained high when compared with the previous year period.

Net sales during the quarter rose 16% to Rs 14,986 crore against Rs 12,900 crore in year-ago period. On Thursday, HUL's scrip closed 1.61% lower at Rs 2,643.05 on NSE.

The company has reported an EBITDA (earnings before interest, tax, depreciation, and amortization) of Rs 3,537 crore in the third quarter, showing growth of 8% over previous year period. Meanwhile, EBITDA margins declined 180 basis points year-on-year to 23.6%.

Overall, volume growth during the third quarter stood at 5%.

"We are cautiously optimistic in the near term and believe that the worst of inflation is behind us. This should aid in a gradual recovery of consumer demand," said Sanjiv Mehta, CEO and MD, Hindustan Unilever.

"We remain focused on managing our business with agility, and continue growing our consumer franchise whilst maintaining margins in a healthy range," Mehta added.

Segment-wise, the home care business saw 32% revenue growth and volume grew in double-digits, largely driven by price increases in the fabric wash and household care portfolios to partly offset the higher input costs.

With softening in palm oil, price reductions were taken in the soaps portfolio during the quarter. The Hair Care segment grew in high single-digits led by strong performance in Clinic Plus, while Oral Care delivered a steady performance led by Close-up.

"We continue to manage our business dynamically by driving savings harder across all lines of profit and loss, ensuring the right price-value equation and investing competitively behind our brands," HUL said in a filing.

The beauty and Personal Care segment grew 10%, with the skin cleansing business delivering strong double-digit growth, while Foods and Refreshment business clocked at 7% growth, led by robust performance in foods, coffee and ice cream.