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Hindustan Unilever's operating profit for the April-June quarter was broadly in line with estimates with net profit on a stand-alone basis increasing by 19.2% to Rs 1.529 crore. on domestic volume growth and operational performance.
Income from operations increased by 11.2% to Rs 9,487 crore. EBITDA (earnings before interest, taxes, depreciation and amortization) increased by 20.6% to 2,251 crores during the quarter and the margin improved by 183 basis points to 23.73%.
"We achieved another strong performance during the quarter." Sanjiv Mehta, CMD, said in a statement
"The company had made some price declines in the first quarter of fiscal year and the cost of account composition, judicious pricing and a strong savings program.In the coming quarters, the company will continue to evaluate inflationary trends and continue to revise prices. Oil and rupee prices remained volatile during the quarter, and we will have to see how that will be in the second quarter before we revisit our prices.Sometimes we do not take an initial price reduction, but we can increase the size or the quantity of products.Our margins have steadily increased and over the 27 quarters only a quarter during the demonetization our margins have not increased, remaining 26 quarters our margins have increased. Gross olatility and currency-driven inflation are key risks, "Mehta said.
Growth in domestic volume was in line with estimates of 12% versus 11% in the previous quarter and 0% a year ago. 19659003] In addition, the company will continue to be aggressive in stimulating volume growth and will not hesitate to invest in research and increase advertising and promotions. "Despite the inflationary pressures, we have not reduced the advertising and promotion spent.Advertising and promotional expenses were increased in the first quarter of fiscal year 19 to meet the competitive actions in the market. Investment in research and support for innovation will also continue, "said Mehta
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