Hind Unilever Q3 net marginally down at Rs637.5 crore
25 Jan 2011
Hindustan Unilever Limited (HUL) has reported a marginal decline in its fiscal third quarter (October-December 2010) net profit at Rs637.51 crore against Rs649.11 crore in the similar period of the previous financial year.
The fast moving consumer goods (FMCG) major attributed the 1.8 per cent decline in its net profit for the quarter to higher input costs that brought down its operating margins.
Total income of the company during the October-December 2010 quarter increased 12.48 per cent to Rs5,204.73 crore, from Rs4,612.11 crore in the corresponding period of the previous financial year (2009-10), HUL said in a filing with the Bombay Stock Exchange (BSE).
Net sales of the company grew 12 per cent during the quarter while domestic sales volume increased 13 per cent.
"Our strategy is working and is reflected in the consistent double digit underlying volume growth over the last four quarters and ahead of market growth," HUL chairman Harish Manwani said.
HUL said its personal products business grew 20 per cent, led by skin care, hair and oral products like Fair and Lovely cream, Dove hair range and Close-up toothpaste. The home and personal care business reported a growth of 11.6 per cent, followed by food business at 11.3 per cent.
To offset the effects of inflation on input prices, HUL plans to focus on buying efficiencies and cost saving.
"In an inflationary environment, we will manage our business dynamically, through judicious pricing actions and increased focus on cost effectiveness, while ensuring that we remain competitive in the market place," Manwani said.
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