The Hindu Business Line : Hind Unilever net dips 21 pc

Snapshot
The cost saving programme involves better buying strategies, logistics management and packaging.
The company approved a special platinum jubilee dividend of Rs 3 per share to commemorate 75th anniversary.

Our Bureau

Mumbai Oct 31 Bereft of the cushion of nearly Rs 150 crore in extraordinary income, Hindustan Unilever Ltd (HUL) reported a 21.6-per-cent decline in net profit in the quarter ending September 30, 2007 compared to the same time last year.

The net profit for the latest quarter amounted to Rs 408.06 crore, as against Rs 520.74 crore in the same period a year ago. The company’s extraordinary income last September, included a profit on sale of investments (Rs 120.8 crore) and reversal of provision for employee related costs for the staff at Sewri (Rs 66.8 crore).

The company also said that the results for the quarter were not comparable to those of the year ago quarter to the extent of amalgamation of Modern Foods (India) Ltd and its subsidiary with the company which were stand alone entities then.

HUL said it has registered a 7.8-per-cent increase in its profit before interest, tax and financial income (PBIT) at Rs 444.90 crore during the latest quarter as compared to Rs 412.52 crore the same time last year. Its net sales stood at Rs 3,364.63 crore, up 9.7 per cent, mostly driven by its FMCG (fast moving consumer goods) business.

Mr Harish Manwani, Chairman, said FMCG demand continues to be strong in both urban and rural markets. “We have broadly sustained our market shares across categories. We expect personal products to regain its growth momentum,” he said, adding that input cost inflation remained a concern for the company.

HUL is revving up its cost saving programme to beat the rising input costs, especially that of vegetable oil. The cost saving programme involves better buying strategies, logistics management and packaging, Mr D. Sundaram, Director (Finance), told reporters.

While revenue from its soaps and detergents business grew from Rs 1,393 crore to Rs 1,572 crore during the quarter, personal products and beverages fetched Rs 887 crore and Rs 390 crore respectively. Shampoo category has grown in double digits with a good growth in Clinic All Clear. Product innovations during the quarter included the re-launch of Fair and Lovely and Lux Crystal Shine, apart from the launch of the Lakme 9-5 range. The Knorr Soups range was also re-launched during the quarter.

“The company’s water purifier product now reaches three million consumers across eight States, with Delhi and UP launch having taken place during the quarter,” Mr Sundaram said.

The company approved a special platinum jubilee dividend of Rs 3 per share to commemorate its 75th year of existence.

The company’s shares fell 5.21 per cent on the BSE to close at Rs 207.60 on Wednesday.