Hindustan Unilever dropped 3.42% to Rs 798.20 at 15:20 IST on BSE after net profit declined 22.42% to Rs 971.40 crore on 2.86% rise in total income to Rs 8120.60 crore in Q3 December 2015 over Q3 December 2014.
The result was announced during market hours today, 15 January 2016.Meanwhile, the BSE Sensex was down 278.57 points, or 1.05%, to 24,512.11.
More than usual volumes were witnessed on the counter. On BSE, so far 1.77 lakh shares were traded in the counter, compared with an average volume of 97,623 shares in the past one quarter. The stock hit a high of Rs 828 and a low of Rs 776.60 so far during the day.
There was an exceptional loss of Rs 79.61 crore in Q3 December 2015 as against exceptional gain of Rs 396.58 crore in Q3 December 2014 which impacted profitability in Q3 December 2015. Exceptional income in Q3 December 2014 was from the sale of properties and provisions for restructuring & select contested matters. Net profit before exceptional items rose 7.2% to Rs 1023.86 crore in Q3 December 2015 over Q3 December 2014.
Hindustan Unilever (HUL) said that during Q3, turnover grew at 3% with 6% underlying volume growth. The growth of turnover in Q3 continued to be impacted by the phasing out of excise duty incentives and price de-growth, as the benefit of lower commodity costs was passed on to consumers.
Input costs were benign resulting in a 290 basis points (bps) reduction in cost of goods sold. Brand investments were sustained at competitive levels and overall A&P was up 160 crore, an increase of 165 bps.
Hindustan Unilever also said during market hours today, 15 January 2016 that the board of directors of the company at its meeting held on 15 January 2016 has considered and approved a scheme of arrangement, between the company and its members to reclassify and transfer the amounts lying to the credit of the general reserve to the profit & loss account of the company. The scheme does not contemplate any separate benefits for the promoter/promoter group/group companies other than the eligibility as shareholders. Upon the scheme becoming effective, there will be no change in the shareholding pattern of the company pursuant to the scheme.
HUL is India's largest fast moving consumer goods (FMCG) company.
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