Shares of Hindustan Unilever (HUL) eased 3% in early trade Wednesday even after posting better-than-expected earnings performance for the fiscal first quarter to June 30.
The maker of Lux bathing soap also declared (special) dividend of Rs 9.50 per equity share of face value of Re 1.
It has reported 7.2% rise in net profit to Rs 1,881 crore during the quarter under review as compared to net profit of Rs 1,795 crore a year ago.
Revenue from operations for the quarter rose to Rs 10,560 crore in the quarter ended June 2020 from Rs 10,114 crore in the same period a year ago.
Its sales during the quarter under review rose 3.65 percent to Rs 10,570 crore, as against Rs 10,197 crore in the corresponding period a year ago. Its total expenses increased 5.42% to Rs 8,324 crore in Q1 FY2020-21, compared to Rs 7,896. The revenue from home care segment went down to Rs 3,392 crore in April-June 2020 from Rs 3,465 crore in the year-ago quarter.
Beauty & personal care segment revenue decreased to Rs 4,039 crore in the quarter under review from Rs 4,589 crore in the same period of last year.
The revenue of foods & refreshment segment stood at Rs 2,958 crore in April-June 2020 against Rs 1,950 crore in the same quarter of last year.
HUL’s resilient performance is reflective of the intrinsic strength of its portfolio. While constraints continue due to restrictions in several parts of the country and the near-term demand outlook remains uncertain, it remain well positioned to drive competitive, profitable and responsible growth. The long-term structural opportunity of FMCG in India also remains intact.
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