Hindustan Unilever's Q1 net profit rises 5.7% to Rs 1,897 cr; sales up 3.7%

FMCG major Hindustan Unilever on Tuesday reported a 5.7 per cent increase in consolidated net profit to Rs 1,897 crore for the first quarter ended June 30.

The company had posted a net profit of Rs 1,795 crore in April-June quarter of the previous fiscal.

Its sales during the quarter under review rose 3.65 per cent to Rs 10,570 crore, as against Rs 10,197 crore in the corresponding period a year ago, Hindustan Unilever Ltd (HUL) said in a regulatory filing.

"In a challenging context of Covid-19 disrupting markets and operations, HUL delivered a resilient performance with reported turnover growth of 4 per cent and profit after tax and before exceptional items growing by 7 per cent," said HUL.

Its total expenses increased 5.42 per cent to Rs 8,324 crore in Q1 FY2020-21, compared to Rs 7,896.

"Our performance in the quarter has been resilient and reflective of the intrinsic strength of our portfolio, agility in operations, excellence in execution, purpose-driven leadership and our strong balance sheet.

"While constraints continue due to restrictions in several parts of the country and the near-term demand outlook remains uncertain, we remain well-positioned to drive competitive, profitable, and responsible growth. The long-term structural opportunity of FMCG in India also remains intact," HUL CMD Sanjiv Mehta said.

Shares of HULon Tuesday settled at Rs 2,319.10 apiece on BSE, down 0.48 per cent from previous close.