The firm additionally managed to take care of a steady margin whereas income had been pushed by meals and hygiene sector, which carried out higher than others. The administration believes the near-term outlook is bettering.
The inventory closed down 0.34 per cent to Rs 2,390.75 on BSE earlier than the corporate got here out with its numbers.
Here are the important thing takeaways:
Margins wholesome
Ebitda margins at 24 per cent stay wholesome. Profit after tax at Rs 1,921 crore elevated by 19 per cent. “We have significantly dialed up investments behind our portfolio and in building future-fit capabilities. Net revenue management and savings agenda has enabled us to drive a healthy bottom line,” HUL mentioned.
Business development picks up
Domestic client development, which was using largely on Horlicks for the final couple of quarters, is lastly exhibiting some indicators of revitalisation. The firm mentioned, excluding Horlicks and VWash influence, enterprise grew at 7 per cent.
“Higher mobility, consumer relevant innovations and investments behind market development are driving business momentum. Our business fundamentals remain strong with 86% of our business gaining penetration. Health, hygiene and nutrition forming 80% of our portfolio continues to grow in double digits and we have seen significant improvement in discretionary categories,” mentioned the corporate.
Food finest section
Foods & refreshment section sustained the excessive development momentum by rising at 19 per cent. Tea grew in double digits, beating its friends, the corporate claimed. Ice lotions, Food options and merchandising companies are bettering progressively as out-of-home consumption improve.
Detergents sale will increase
With elevated mobility, Fabric Wash efficiency within the quarter improved sequentially. Household care continued its sturdy efficiency throughout segments, delivering double-digit development.
Beauty section up 9 per cent
Beauty & private care section grew 9 per cent with strong efficiency throughout classes and robust double-digit growths in pores and skin cleaning, hair care and oral care. Skin cleaning efficiency was led by ‘Lifebuoy’ and double-digit development within the premium section. Skin care portfolio growths had been led by good demand pick-up within the winter portfolio, the corporate mentioned.
Management’s take
“I am particularly pleased with the performance of our Nutrition business and with the recovery in the discretionary segments of our portfolio; these are structurally attractive and offer immense growth potential. The near-term demand outlook is improving, and we expect to see revival in urban areas while rural areas should continue to do well,” mentioned Sanjiv Mehta, Chairman and Managing Director, HUL.
Analyst’s take
Edelweiss mentioned the numbers had been in step with its estimates. “Good recovery in laggard parts, 80 per cent of portfolio grew in double digits, Minimal margin compression, strong brand Investments continue, which is the right strategy in our view,” it mentioned.