HUL Q1 net up 17.62%

In the first quarter this fiscal,the company’s net sales jumped by 35.67 per cent to Rs 6,503.89 crore from Rs 4,793.89 crore in the corresponding quarter last fiscal.

“This is the fourth consecutive quarter of double-digit growth,led by a combination of innovations,market development and relentless focus on execution,” HUL Chairman Harish Manwani said in a statement.

During the quarter,the firm said its domestic consumer business grew by 15 per cent to Rs 5,100.37 crore,while the home and personal care business grew by 15.4 per cent to Rs 4,133.24 crore.

Revenues from HUL’s foods business grew by 14.9 per cent to Rs 967.13 crore during the reporting quarter,with both beverages and packaged foods delivering strong performance,it said.

The company,one of the biggest spenders on advertisements in the country,also tightened its purse strings during the quarter. Its ad spend was 15.74 per cent lower at Rs 632.95 crore during the quarter,compared to Rs 751.21 crore in the same period a year ago.

“In a challenging business environment,we are managing our business dynamically to ensure that we remain competitive and cost-efficient,” Manwani said.

Advertising spends were stepped up in the personal products and packaged foods segments,while spending on soaps and detergents was calibrated in line with industry trends,HUL said,adding “advertising and promotion spends,at 11.5 per cent of sales,remained competitive”.

Market analysts said HUL’s growth momentum,which they have been able to sustain in volume terms,is quite positive.

“Because of the volume growth,they have been able to up the margin. Now the key challenge for them going ahead will be to sustain this decent number,” IDFC SSKI Securities Ltd Managing Director Nikhil Vora said.

HUL said its board of directors has approved the proposal to demerge its exports business,including specific exports related manufacturing units,into a wholly-owned subsidiary,Unilever India Exports Ltd,with retrospective effect from April 1,2011.

HUL scripts were being quoted at Rs 325.30 apiece on the BSE in afternoon trade,down 0.18 per cent from their previous close.