Hindustan Unilever Q3 net slips 22.4% at Rs 971.4 cr

Country’s largest consumer goods firm Hindustan Unilever Ltd (HUL) on Friday reported a decline of 22.4 per cent in its standalone net profit at Rs 971.4 crore for the October-December quarter of FY16, as weak demand in rural India continued to hurt sales. The company had posted a net profit of Rs 1,252.17 crore during the third quarter ended December 31, 2015, Hindustan Unilever Ltd said in a filing to the Bombay Stock Exchange on January 15, 2016. The growth in the quarter continued to be impacted by the phasing out of excise duty incentives and price de-growth, as the benefit of lower commodity costs was passed on to consumers, the company said in a statement. HUL's net sales however climbed 3.2 per cent to Rs 7,822.86 crore during the quarter under review as against Rs 7,579.18 crore in the earlier quarter. However, it’s total income grew by 2.9 per cent to Rs 8,120.6 crore in Q3 FY 16 from Rs 7,894.39 crore in Q3 FY15. Commenting on the performance, HUL, Chairman, Harish Manwani said, “We have stepped up investment behind our brands and delivered another quarter of profitable volume led growth, consistent with our strategic intent. In an environment of moderating growth and benign input costs, we remain focused on innovation and market development to drive volumes competitively whilst improving operating margins.” The company’s board has also approved, a Scheme of Arrangement which envisages the transfer of the entire balance of Rs 2187.33 crore standing to the credit of the General Reserve to the profit and loss account. Reacting to the numbers, shares of the company ended Friday’s trade at Rs 804.15 apiece, down 2.7 per cent, from previous close on BSE.