For the nine months ended September 1999, it has reported a 25.8 per cent increase in net profit at Rs 724.82 crore on a seven per cent increase in turnover at Rs 7645.31 crore, according to HLL's financial results released here today.

Reacting to the better results, HLL scrip shot up by Rs 150 to Rs 2430 in an otherwise bearish market. HLL reported a profit before tax (PBT) of Rs 374.29 crore for the third quarter while the PBT for the nine-month period stood at Rs 956.62 crore (Rs 813.05 crore last year). The annualised earnings per share (EPS) increased by 25.8 per cent at Rs 44.01 for the nine month period against the corresponding period last year. ``Thecompany has, based on approvals from the government, signed a technical collaboration agreement with Unilever effective September one, 1999,'' HLL said adding, the charge for royalty during the third quarter was Rs 4.90 crore.

Sales of its domestic home and personal care products business grew by 12.7 per cent in the third quarter of 1999 while food categories grew by 15.4 per cent. The disposal of the dairy business, which has been approved by the shareholders in July this year, has been completed last month, HLL said. ``The domestic market for our portfolio continues to be affected by consumer downtrading, impacting the unit value of realisation,'' HLL chairman K B Dadiseth said.

With the exception of tea and ice cream, the company has been able to achieve good levels of volume growth in its home and personal care and food portfolios, he added. The oils and fats business, while registering volume growth, has been severely impacted by the sharp fall in commodity prices of oils affecting valuerealisation, Dadiseth explained and added that exports continued to be under pressure.