HUL Q1 2014 net profit at Rs 1019 crores; volumes disappoint

Business

oi-Sunil

By Sunil Fernandes

Updated: Friday, July 26, 2013, 13:27 [IST]

Fast Moving Consumer Goods Company Hindustan Unilever reported a profit after tax of Rs 1019 crores for Q1 2014 largely boosted by an exceptional item.

Total Income has come in at Rs 6809 crores, which was below expectations. The major disappointment from the company's results was the volume growth of just 4 per cent, as against volume growth expectations of 5-6%. Net sales at the company grew by 7 per cent for the quarter ending June 30, 2013.

However, the silver lining for the company was the operating margins which came in at a healthy 15.9 per cent.

"We continued to see slowdown in growth in value and volume. Domestic consumer business grew 7% and the beverages segment saw growth of 16 per cent," the company management said in a press conference.

Meanwhile, Hindustan Unilever has appointed Sanjiv Mehta as the Managing Director and CEO of the company. "Sanjiv Mehta, currently Chairman, North Africa & Middle East (NAME), Unilever, has been appointed as the Managing Director and Chief Executive Officer of the Company in place of Nitin Paranjpe with effect from October 01, 2013," the company has stated in a release.

The stock of Hindustan Unilever was hammered down 5 per cent at Rs 557 on the National Stock Exchange.

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