HUL net soars the most in 14 quarters

Hindustan Unilever (HUL) today reported the highest net profit growth in last fourteen quarters on the back of one time exceptional income in the March quarter.

The fast moving consumer goods (FMCG) company posted 47 per cent jump in net profit to Rs 581 crore for Q4FY10, against Rs 395 crore in the corresponding quarter a year ago. The company posted healthy net profit growth, despite single digit 8 per cent rise in net sales to Rs 4,316 crore (Rs 3,988 crore) during the quarter.

The company reported highest net profit growth mainly due to Rs 143 crore exceptional income, which include sale of properties, sale of long term trade investments and reduction in provision for retirement benefits arising out of change in actuarial assumptions.

“In an environment of heightened competitive intensity we have accelerated volume growth, ahead of market. Broad based actions have been taken to enhance competitiveness of our brands, build new segments, expand offerings in foods and improve the overall quality of our innovations and speed to market. These initiatives have started to yield positive results” said Harish Manwani, chairman of the company.

The board proposed final dividend of Rs 3.50 per share for the financial year ending 31 March 2010. Together with interim dividend of Rs 3 per share the total dividend for the FY10 amounts to Rs 6.50 per share compared to Rs 6 per share in the previous year.