HUL dips post Q2 earnings

The company has reported underlying volume growth of 7% in September 2012 quarter as compared to 9% in June 2012 quarter.

Hindustan Unilever (HUL) is trading lower by 2.5% at Rs 550, falling 3.45% from intra-day high on concerns of slowdown in volume growth.

The fast moving consumer goods (FMCG) company has reported underlying volume growth of 7% in September 2012 quarter as compared to 9% in June 2012 quarter.

“During the quarter, the domestic consumer business sustained its robust performance growing at 16% with underlying volume growth of 7%. Overall growth in the quarter was impacted by the budget rationalization in the Canteen Stores Department (CSD),” HUL said in a filing.

Meanwhile, the company has reported 17% year-on-year (yoy) growth in net profit at Rs 807 crore in September quarter as compared to market expectation of Rs 772 crore. Total operational income grew 12.5% at Rs 6,311 crore on y-o-y basis.

The board of directors has declared an interim dividend of Rs 4.5 per equity share of face value Re 1 each, for the year ending 31st March 2013.

“In addition, an amount of Rs 8 per share has been declared as a special dividend to be paid out of the accumulated profit and loss balance and exceptional income generated in the first half of FY 2012-13 and will be funded from the current cash balances,” it added.

The stock opened at Rs 566 and hit a high of Rs 569 on the BSE. As many as a combined around 5 million shares have already changed hands on the counter so far against an average sub 2 million shares that were traded daily in past two weeks.