The Hindu Business Line : HLL Q4 net rises 76.9 pc

Strong numbers
Net sales were up 11.64 per cent
Impact of selective price increases, improved sales mix and cost savings result in a higher gross margin.

Mumbai , April 28

Hindustan Lever Ltd (HLL) today reported a 13.63 per cent growth in profit after tax but before exceptional item for the quarter ended March 31, 2006, to Rs 293.98 crore from the previous corresponding Rs 258.72 crore.

With net exceptional item of Rs 148.88 crore aboard, net profit was up 76.97 per cent at Rs 442.86 crore (Rs 250.25 crore for the year-ago period).

Exceptional item for the quarter included profit of Rs 202 crore on sale of the `Nihar' brand, apart from other costs.

The company's net sales were up 11.64 per cent at Rs 2,798.05 crore (Rs 2,506.38 crore) with domestic HPC sales of Rs 2,068.41 crore (Rs 1,724.38 crore) and food sales of Rs 432.13 crore (Rs 389.86 crore). Exports dipped 19.47 per cent to Rs 275.53 crore (Rs 342.14 crore).

"Input cost pressure continued during the quarter, led by crude oil price escalation.

"The impact of selective price increases, improved sales mix and cost savings resulted in a higher gross margin. In a fiercely competitive market context, a large part of the margin increase was redeployed in brand investments," HLL's official statement said. Expense for advertising and promotions increased 45.33 per cent to Rs 303.34 crore (Rs 208.73 crore).

EBIT margin improved to 11.9 per cent from 10.5 per cent.

Broadbased growth

According to Mr D. Sundaram, Director, Finance, HLL, broad-based growth aided by the overall momentum of the FMCG sector helped the company.

The home and personal care (HPC) business grew 20 per cent, while foods improved 11 per cent.

In HPC, laundry, shampoo and skincare led the momentum.

In foods, coffee grew strongly but tea recorded marginal growth in a declining market.

"The packet tea market is declining overall, though some of our brands have done well," Mr Sundaram said.

The water initiative of HLL, at test-marketing stage, has been extended from Chennai to Coimbatore, Tiruchirapalli and Pondicherry.

The HLL share ended Rs 3.40 up at Rs 290.65 in Friday's trade on BSE.

Article E-Mail :: Comment :: Syndication :: Printer Friendly Page

Stories in this Section
Cyclone Mala churns into Category 4 status

Indiabulls Sec gets a breather

SEBI order harsh; we are victims of fraud: Karvy

Karvy refutes SEBI charges

Fictitious demat a/cs opened in 2003 itself

Grasim to spend Rs 4,500 cr on capex

Inflation up on costlier fuel, manufactured items

`Work environment vital to manage attrition'

GAIL net profit dips 22% in Q4

HLL Q4 net rises 76.9 pc

Bharti Airtel net up 49 pc on user growth

ATI expanding operations in India

Govt may allow wheat import by private sector

Sensex rebounds after a crash