Hindustan Unilever shows 17% rise in Q2 profit

Hindustan Unilever, the fast-moving consumer goods major, on Friday reported an over 17 per cent rise in net profit at Rs 807 crore for the quarter ended September, mainly on the back of higher soaps and detergents sales.

The company had posted net profit of Rs688.92 crore in the same period of last year.

Its net sales rose to Rs6,155.41 crore in second quarter as against Rs5,516 crore in the year-ago period, which was in line with market expectations.

The overall growth in the quarter was impacted due to the budget rationalisation in the canteen stores department (CSD), which contributes about six per cent to the overall sales for the company.

"The company continued to focus on innovations during the quarter. In medium-to long-term, the market potential remains positive. However, in the short term, the market environment is challenging. We are also aware that there is inflationary pressure," Harish Manwani, chief executive officer, said while announcing the earnings at a news conference in Mumbai.

While soaps and detergents segment grew by 22 per cent year-on-year, personal products segment was up by 12 per cent. The gross margins rose by 123 basis points, which is largely due to price hikes by the company in the last few quarters.