HUL Q4 net profit down 3.9 pc at Rs 1,512 crore

FMCG major Hindustan Unilever on Thursday reported 3.93 per cent decline in consolidated net profit to Rs 1,512 crore for the fourth quarter ended March 31, impacted by COVID-19 pandemic.

The company had posted a net profit of Rs 1,574 crore in the January-March quarter of the previous fiscal.

Its sales during the quarter under review slipped 9.61 per cent to 9,055 crore, as against Rs 10,018 crore in the corresponding period a year ago, Hindustan Unilever Ltd (HUL) said in a regulatory filing.

"The spread of COVID-19 impacted the business from mid-March, which culminated into scaling down of operations post the national lockdown. Domestic Consumer Growth declined by 9 per cent with a decline of 7 per cent in underlying volume growth. Reported EBITDA margin reduced by 40 basis points," said HUL.

However, the company, said its "performance has been competitive with corporate market share gains" in this challenging economic context.

HUL's total expenses declined 6.86 per cent to Rs 7,412 crore compared to Rs 7,958.

"COVID-19 is perhaps the biggest challenge for us both from the lens of sustaining lives as well as livelihoods. The human impact of the pandemic is uncertain, and we are fully committed to working with the Government and our partners to ensure that we overcome this crisis together.

"Our portfolio of trusted brands, our financial stability and quality of leadership teams positions us well to deal with the crisis and, for the changing world that will come afterwards. With the GSK CH merger effective from 1stApril, iconic brands such as Horlicks and Boost will now enable us to also address the nutrition needs of consumers. Our approach will be to protect our business model, grow competitively and contribute to the nation," HUL CMD Sanjiv Mehta said.

Shares of HUL on Thursday settled at Rs 2,195.70on the BSE, down 1.63 per cent from previous close.