FMCG major Hindustan Unilever Ltd today reported 3.68 per cent increase in standalone net profit at Rs 1,056.85 crore for the first quarter ended June 30, 2014-15.
It had posted net profit of Rs 1,019.25 crore in the April-June quarter of 2013-14 on account of exceptional gain of Rs 106.25 crore, the company said in a BSE filing.
HUL's net sales climbed to Rs 7,570.78 crore in Q1, 2014-15, from Rs 6687.49 crore a year ago, up 13.20 per cent.
HUL Chairman Harish Manwani said: "We continue to grow ahead of our markets and have delivered another quarter of strong top and bottom-line performance.
"While we are seeing headwinds on market growth, consumer spending and inflation, we remain focused on managing the business for long term competitive and profitable growth and implementing our strategy with even greater rigour."
Overall expenses in Q1 stood at Rs 6,466.52 crore, as against Rs 5,789.88 crore in the year-ago period.
Hindustan Unilever sees no demand recovery though sales improve
(Reuters) India's Hindustan Unilever Ltd (HUL) sees no immediate sign of recovery in demand for consumer goods after a transport strike last year helped sales volume in April-June outgrow estimates for the first time in eight quarters.
HUL has been selling Rin detergent, Fair & Lovely skin cream and Dove soap in an economy witnessing its longest period of sub-5 percent growth in 25 years. Household spending has suffered as high inflation eclipses city salary rises and a recent drought reduces rural income.
The consumer goods sector in Asia's third-largest economy is worth about $13 billion according to analysts, but consumers have been "pessimistic" for 33 months, showed a June survey by ZyFin Research.
"The environment continues to be tough and both volume and value growth metrics are not showing substantial signs of improvement," HUL Chief Financial Officer PB Balaji said in a conference call after the company reported quarterly earnings.
"Discretionary categories continue to be under pressure," he said.
Net profit rose 4 percent to 10.57 billion rupees ($175.9 million) in the fiscal first quarter ended June 30, HUL said in a statement. That compared with the 9.66 billion rupees mean estimate of 11 analysts according to Thomson Reuters StarMine.
Net sales rose 13 percent to 75.7 billion rupees versus the analyst average estimate of 74.3 billion, helped by product relaunches as well as soaps and detergents exceeding analyst forecasts.
Sales volume grew 6 percent from the same