Shares of FMCG major Hindustan Unilever plunged over 7 per cent in early trade today even as the company posted a 15.59 per cent jump in net profit for the third quarter ended December 31, 2012.
Extending the previous day’s losses, the shares of the company opened on a weak note and further dropped 7.12 per cent to trade at Rs 447.25 on the BSE. On the National Stock Exchange too, the scrip tanked 6.87 per cent to Rs 447.85.
The stock was the biggest loser among the blue-chip companies on both the key indices — Sensex and Nifty in the morning trade.
“HUL has delivered a disappointing set of numbers for Q3 FY’13, with the 5 per cent underlying volume growth for domestic consumer business being the lowest in the last three years,” said V. Srinivasan, Research Analyst-FMCG, Angel Broking.
Hindustan Unilever had yesterday reported a 15.59 per cent jump in net profit at Rs 871.36 crore for the third quarter ended December 31, 2012, on account of robust sales across various business verticals.
The company’s board has approved a proposal to increase the royalty payment to 3.15 per cent to its parent firm Unilever Plc. The amount, equivalent to 3.15 per cent of the total turnover, would be paid for various provisions related to trademark licences and technology, among others.
The dip in HUL stock was in contrast with a positive broader market, where the BSE benchmark Sensex was trading at 20,020.98, up 39.41 points.