The net profit of the FMCG major rose 8.71% to Rs 2009 crore on 16.15% rise in net sales to Rs 11,276 crore in Q2 September 2020 over Q2 September 2019.Standalone profit before tax (PBT) rose 15.2% to Rs 2,661 crore in Q2 FY21 over Q2 FY20. EBITDA rose 17% to Rs 2869 crore during the period under review. EBITDA margin improved by 30 basis points year on year.
The FMCG major said that growth in the quarter was competitive and profitable with reported turnover growth of 16% and domestic consumer growth (excluding the impact of merger of GSK CH and acquisition of VWash) of 3%. HUL said that 70% of its business is gaining penetration. Health, Hygiene and Nutrition, forming c.80% of the portfolio, grew in double digits.
On a consolidated basis, HUL's net profit increased by 8.58% to Rs 1974 crore on 15.9% rise in net sales to Rs 11,510 crore in Q2 FY21 over Q2 FY20.
Commenting on the performance, Sanjiv Mehta, chairman and MD said, "In the context of a challenging economic environment, our growth has been competitive and profitable. We continue to demonstrate execution prowess, agility, adaptability, resilience, and passion of our people. We have expanded our portfolio with consumer relevant innovations and have invested strongly behind our brands. Our operations and service Levels are now back to pre-COVID levels. The economic outlook has improved given the various initiatives taken by the Government and Reserve Bank of India. In our sector, rural markets have been resilient but the demand in urban India especially in metropolitan cities has been muted. We believe that the worst is behind us and we are cautiously optimistic on demand recovery."
HUL has also declared an interim dividend of Rs 14 per equity share. The record date is set on 29 October 2020.
Shares of HUL were down 0.63% at Rs 2165 on BSE.
HUL manufactures branded and packaged consumer products including soap, detergent, personal care products and processed food.
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