HUL gains as Q2 profit beats street forecast

The stock was up 4% at Rs 618 in early morning deals on the National Stock Exchange.

Hindustan Unilever (HUL) is trading higher by 3% at Rs 614 in early morning deals on NSE after reporting better than expected 10% year on year (yoy) jump in net profit before exceptional items net of tax at Rs 883 crore for the quarter ended September 2013 (Q2). The country’s largest fast moving consumer goods company had profit of Rs 806 crore in the year ago quarter.

The company’s net sales grew 9.6% yoy at Rs 6,747 crore as domestic consumer business posted an underlying volume growth of 5% soaps and detergent segment posted a 6% yoy growth in revenue, while personal products posted a much improved 12% yoy growth.

The operating profit margin stood at 13.9% up 50bps on yoy basis despite the increase in advertisement expenses aided by lower raw material costs.

The stock opened at Rs 604 and touched high of Rs 618 on NSE. A combined around 50,000 shares have changed hand on the counter till 0917 hours on NSE and BSE.