HUL profit up 34 per cent at Rs547 crore in Q2 2008-09

Hindustan Unilever Ltd (HUL) has recorded a 34 per cent rise in its net profit for the second quarter (July-September) despite a bearish market and rising input costs.

The consumer goods major reported 34 per cent rise in net profit at 546.6 crore and a 17 per cent rise in its operating profit at Rs520.1 crore for the quarter ended September 2008.

Net sales increased 20 per cent to Rs4,027.8 crore, led largely by price increases. Volume sales increased by 7 per cent.

The company said the higher net profit despite escalation in input cost, especially crude-based, has been achieved due to aggressive cost savings programme and pricing actions.

Investment in brands and new categories were sustained during the quarter, growing 14 per cent.

''Consumer spending remains robust in FMCG and we continue to improve our turnover ahead of aggregated market growth. We have sustained volume growth in a high inflationary environment and offset the cost impact through aggressive cost management and judicious pricing. Softening of commodity prices, if sustained, will augur well both for consumers and the business. With strong leadership positions, market development will continue to be a major source of growth. We remain focused on sustaining competitive growth in our core categories and selectively building new categories,'' chairman Harish Manwani said.