(HUL) on Tuesday reported an 8.7 per cent year-on-year (YoY) rise in its net profit at Rs 2,009 crore for the second quarter of the current fiscal year (Q2FY21). The company had logged a profit of Rs 1,848 crore in the year-ago period.
On a sequential basis, numbers grew 6.8 per cent.
Total sales (revenue) for the quarter under review came in at Rs 11,276 crore, up 16.1 per cent YoY while underlying domestic consumer business sales (excluding the impact of business combinations) grew by 3 per cent YoY in the quarter. On a quarter-on-quarter (QoQ) basis, total revenue increased by 8.3 per cent.
The board has also declared an interim dividend of Rs 14 per share. The record date for the purpose of determining the entitlement for payment of interim dividend is fixed as October 29, 2020.
Analysts at Emkay Global had estimated HUL's organic sales to grow 5 per cent year-on-year (YoY) whereas, including GlaxoSmithKline Consumer Healthcare (GSK) sales, revenue was expected to grow 19 per cent YoY at Rs 11,713.3 crore. Profit after tax (PAT) or net profit was estimated to increase by 16.4 per cent YoY and 13.9 per cent QoQ to Rs 2,133.3 crore. CLICK HERE TO READ WHAT ANALYSTS HAD EXPECTED
Earnings before interest, tax, depreciation, and amortisation (Ebitda) for the quarter under review came in at Rs 2,869 crore, up 17 per cent YoY while Ebitda margin improved by 30 bps YoY to 25.1 per cent.
"In the context of a challenging economic environment, our growth has been competitive and profitable. We continue to demonstrate execution prowess, agility, adaptability, resilience, and passion of our people. We have expanded our portfolio with consumer-relevant innovations and have invested strongly behind our brands. Our operations and service levels are now back to pre-Covid levels and we have accelerated the pace of digitizing our operations under the 'Re-imagine HUL' agenda, " said Sanjiv Mehta, Chairman, and Managing Director.
The company informed that Health, Hygiene, and Nutrition -- that form nearly 80 per cent of the portfolio -- grew in double digits. It further said that economic outlook has improved given the various initiatives taken by the government and RBI. Rural markets
have been resilient but the demand in urban India has been muted. "We are cautiously optimistic on demand recovery," HUL said in its press release.