HUL Q2 Profit Rises 20% To <span Class='webrupee'>₹</span>2,616 Cr, Declares Interim Dividend Of <span Class='webrupee'>₹</span>17

On a sequential basis, the profit after tax (PAT) grew 14% from ₹2,289 crore in the June quarter.

The company has also declared an interim dividend of ₹17 per equity share for the financial year ending 31 March, 2023.

The FMCG major's revenue from operations rose 15.9% to ₹14,751 crore as against ₹12,724 crore in the same quarter last year.

Analysts estimated HUL's net profit to jump 10.5% from corresponding quarter of last fiscal to ₹2,417 crore.

EBITDA or Earnings before interest, tax, depreciation and amortization for the quarter came at ₹3,479 crore, up 8% YoY, while operating margin contracted by 172 basis points to 22.89%.

The contraction in margin was due to higher costs. Raw material costs rose 27% on year to ₹5,197 crore, and employee costs jumped 22% to ₹709 crore.

Net sales for the July-September quarter was at ₹14,896 crore, grew by 16%, the company said in a regulatory filing.

“Demand environment remains challenging with inflation impacting consumption. However, with softening in some commodities and monetary/ fiscal measures taken by the government, we are cautiously optimistic in the near-term. In this scenario, we will manage our business with agility, continue to grow our consumer franchise whilst maintaining our margins in a healthy range," said Sanjiv Mehta, CEO and Managing Director.

Mehta further said, "We remain confident of the medium to long term potential of Indian FMCG sector and HUL’s ability to deliver a Consistent, Competitive, Profitable and Responsible growth."

HUL also said that calibrated price increases were taken across fabric wash and household care portfolios as input costs continued to inflate at significantly high levels. Segment-wise, the beauty and personal care recorded 11% growth, led by the outperformance in the premium portfolio.

Skin cleansing delivered strong double-digit growth, driven by beauty and premium brands like Lux, Dove and Pears.

The foods and refreshment segment witnessed a 4% growth in the quarter under review, led by solid performance in foods, coffee and ice-cream portfolios. Foods delivered strong double-digit growth, with volumes growing in the mid-teens, driven by Jams and Unilever Food Solutions business.

On Friday, HUL's scrip closed at nearly 2% higher at ₹2,652.60 apiece on the NSE ahead of the earnings announcement.