Hindustan Lever Q2 net profit up 21 pc to Rs 1,848 crore

FMCG major Hindustan Unilever Ltd (HUL) on Monday posted net profit of Rs 1,848 crore during the July to September quarter, up 21 per cent year-on-year.

The company had posted profit of Rs 1,525 crore in the year-ago period. The board of directors has declared an interim dividend of Rs 11 per share for the year ending March 31, 2020.

HUL's margin expansion was driven by improved mix, benign commodity price movement in large segments and savings agenda, it said in a statement. The earnings before interest, tax, depreciation and amortisation (EBITDA) was up 16 per cent at Rs 2,443 crore.

Revenue for the quarter came in at Rs 9,852 crore, up 6.7 per cent year-on-year.

HUL Chairman and Managing Director Sanjiv Mehta said the company has delivered another quarter of resilient performance and sustained margin improvement. "Our focus on consumer value, excellence in execution and market development continues to serve us well," he said.

However, the near-term outlook for demand especially in rural India remains challenging. "We welcome the various measures announced by the government and the Reserve Bank of India to spur investment and improve liquidity, and are confident that the government will take all necessary steps for higher income transference to rural India," said Mehta.

"HUL remains well positioned to unlock the structural FMCG India opportunity while navigating the short-term challenges. We continue to progress our purpose-led and future-fit agenda which is underpinned by our sustainability initiatives and 'Re-imagining HUL' driven by leveraging data and technology in all aspects of our operations."

In another announcement, the company announced the appointment of Willem Uijen as Executive Director for supply chain and a member of the HUL board from January 1, 2020.

Uijen started his career at Unilever in 1999 as a management trainee in the Netherlands. Since then, he has worked across various roles in the supply chain function in planning, manufacturing, customer service and distribution.

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