MUMBAI: Hindustan Unilever (HUL) reported a 3.8% growth in net profit at Rs 2,717 crore in the second quarter ended September 30, 2023, from Rs 2,616 crore in the corresponding quarter last year. Sales rose 2.4% to Rs 15,027 crore from Rs 14,514 crore during the period.
Underlying volume growth of 2% is lower than the preceding quarter. EBITDA margin at 24.6% was up 130 bps year on year.
The company said in the quarter, there was a one-off credit from favourable resolution of past indirect tax litigation benefiting both topline and bottomline. Excluding this one-off, the underlying sales growth and volume growth, EBITDA margin, PAT (bei) growth would have been 3%, 2%, 23.8% and 7% respectively.
Rohit Jawa, CEO and Managing Director commented
“We delivered a resilient and competitive growth whilst stepping up our EBITDA margin in a challenging operating environment, marked by subdued rural demand and heightened competitive intensity. Looking forward we remain cautiously optimistic.
FMCG demand is likely to continue a gradual recovery with tailwinds from the upcoming festive season, sustained buoyancy of services and Government’s thrust on capex.
At the same time, we need to be watchful of volatile global commodity prices as well as the impact of monsoon on crop output and reservoir levels. In this context, our focus is to provide superior value to our consumers, drive competitive volume growth, and invest behind our brands.”