HUL Q2 net profit up 8.13% at Rs 988.16 cr

Hindustan Unilever reported a 8.13 per cent increase in standalone net profit for the second quarter ended September 2014 at Rs 988.16 crore compared to Rs 913.8 crore in the same quarter last year.

Sales for the FMCG major grew 10.64 per cent to Rs 7,465.54 crore compared to Rs 6747.2 crore in the same quarter last year. Domestic consumer business during the quarter grew at 10 per cent while underlying volume growth during the quarter was at 5 per cent.

“Volumes are still negative and value growth is under 4 per cent in the context of total market in the categories that we operate. But we have significantly outpaced the market. The market and conditions are still very tough and we don't know when the real turnaround will happen,” Sanjiv Mehta, MD at HUL said.

The profits in the were impacted due to the increase in effective tax rates, he added.
Tax expenses during the quarter rose to Rs 417.64 crore compared to Rs 285.73 crore an year ago.

Advertising and promotional spend during the quarter, however, declined 3.03 per cent to Rs 925.05 crore compared to Rs 954.02 crore an year ago. Revenues from the soaps and detergent category for HUL grew 11 per cent to Rs 3,755.1 crore compared to Rs 3,380.77 crore the year ago.