FMCG major Hindustan Unilever Ltd (HUL) reported an 8.7 percent rise in net profit for the second quarter of fiscal 2021 at Rs 2,009 crore as against Rs 1,848 crore in the same period last year.
During the quarter, the company's revenue increased by 16.1 percent to Rs 11,442 crore from Rs 9,582 crore, YoY.
HUL reported volume growth of 1 percent for the July-September quarter (excluding GSK Consumer). Underlying domestic consumer business sales (excluding the impact of business combinations) grew by 3 percent in the September quarter, the company said in an exchange filing.
HUL had merged GSK Consumer Healthcare India with effect from April 2020.
"The operations and service levels are now back to pre-COVID levels and we have accelerated the pace of digitising operations under the 'Re-imagine HUL' agenda," said Sanjiv Mehta, Chairman and Managing Director, HUL.
On the operational front, EBITDA rose 17.4 percent to Rs 2,869 crore from Rs 2,443 crore while EBITDA margin expanded to 25.4 percent from 24.8 percent, YoY.
The company said that its Health, hygiene and nutrition portfolio grew in double digits - comprising 80 percent of the portfolio.
"Rural markets have been resilient but the demand in urban India, especially in metropolitan cities, has been muted. We believe that the worst is behind us and we are cautiously optimistic on demand recovery," Mehta added.
Home care business revenue fell 1.6 percent YoY to Rs 3,318 crore. The segment EBIT rose 14 percent to Rs 678 crore while EBIT margin rose by 280 bps to 20.4 percent.
HUL said during the quarter, exceptional items included restructuring expenses of Rs 69 crore, acquisition and disposal related cost of Rs 17 crore and profit from sale of surplus properties Rs 5 crore.
"Strong savings funnel, judicious and calibrated pricing in Tea, synergies in nutrition have enabled to successfully manage headwinds of commodity inflation and adverse mix. We have significantly increased investments behind brands and spends continue to be competitive," the company added.
The company has declared an interim dividend of Rs 14 per share for the period ended September 2020.
At 3:10 pm, the shares of HUL were trading 0.10 percent lower at Rs 2,176.60 on the BSE.
First Published: IST