Hindustan Unilever Q1 results: Net profit rises 2.7% to Rs 2,538 crore

Hindustan Unilever posted a higher first-quarter profit on Tuesday as a recovery in rural India helped with a revival of demand for the Dove shampoo-maker's core business.

The company, a unit of UK's Unilever, reported a 2.7% rise in profit to Rs 2,538 crore ($303.23 million) for the quarter ended June 30.

Analysts, on average, had expected a profit of Rs 2,531 crore, according to data from LSEG.

Indian consumer goods' sales began to rise in the three months ended March, with rural growth outpacing that in urban areas for the first time in five quarters.
 

Easing commodity prices aided volume growth for branded consumer goods giants.
 

For HUL, urban sales contributes 60% and rural contributes the rest, as of March quarter ended.
 

Hindustan Unilever's sales rose to Rs 15,166 crore in the first quarter, aided by 4.6% growth in its key home care segment. The segment houses products including Cif, Vim and Surf Excel.
 

Its shares closed 1.1% higher on Tuesday. It gained 9% in the June quarter, compared to a 5% gain in the Nifty fast-moving consumer goods index.