HUL bucks trend after good Q3 results

Hindustan Unilever rose 1.71% to Rs 575.55 on BSE after the company reported strong Q3 December 2013 results.

The result was announced during trading hours today, 27 January 2014.

Meanwhile, the BSE Sensex fell 426.11 points, or 2.02%, to 20,707.45.

On BSE, 5.15 lakh shares traded in the counter, compared with an average volume of 1.07 lakh shares in the past one quarter.

The stock hit a high of Rs 584.40 and a low of Rs 556 in intraday today. The stock hit a record high of Rs 725 on 24 July 2013. The stock hit a 52-week low of Rs 432.25 on 7 March 2013.

The stock had underperformed the market over the past one month till 24 January 2014, rising 0.04% compared with the Sensex's 0.48% rise. The scrip had underperformed the market in past one quarter, falling 6.99% as against Sensex's 1.97% rise.

The large-cap FMCG company has an equity capital of Rs 216.26 crore. Face value per share is Re 1.

Hindustan Unilever's (HUL) net profit rose 21.91% to Rs 1062.31 crore on 8.51% increase in total income to Rs 7366.01 crore in Q3 December 2013 over Q3 December 2012.

In Q3 December 2013, the domestic consumer business grew at 10%, ahead of market, with 4% underlying volume growth, HUL said in a statement.

The company said that the operating context during the quarter remained challenging with market growth under pressure, firm input costs given the rupee depreciation, an uncertain media environment and the high competitive intensity. Cost inflation was managed through a combination of judicious pricing action, unwinding of promotions and substantial cost savings, HUL added.

Investment behind brands was sustained at competitive levels; overall advertising and promotion (A&P) spend rose 13.05%, or Rs 107 crore, to Rs 929.46 crore in Q3 December 2013 over Q3 December 2012. Despite this step up, profit before interest and tax (PBIT) grew by 13% and PBIT margin improved by 50 basis points. Profit after tax before exceptional items, PAT (bei), grew by 9% to Rs 955 crore in Q3 December 2013 over Q3 December 2012, the company said.

The company reported an exceptional income of Rs 22.97 crore in Q3 December 2013 compared with an exceptional loss of Rs 7.28 crore in Q3 December 2012.

Harish Manwani, Chairman commented: "Our growth has been competitive and profitable and the results are a reflection of how we dynamically managed the business despite the headwinds in the environment. Looking forward, we are conscious of the uncertain macro context but remain positive on the mid to long term opportunities in our sector. We are determined to stay the course on our strategy and will continue to invest in the business for the long term."

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