The FMCG giant HUL saw a good rise in profits in the July-September quarter and performed much better than the expectations. The profit surged by 22% year on year basis and reached 688.92 crore as a result of price hikes and improvement in sales. The net sales of HUL have seen a rise of 18% to Rs. 5,522.16 crore as compared to the figures last year in the same quarter. After the results the shares of HUL reached a lifetime high of Rs. 378.15 on Nifty as the investors were happy to see the earnings growth by the largest FMCG Company. The raw materials cost of HUL saw a rise of 27% to Rs. 2,290.54 crore as compared to last year.
Inflation and the commodity costs are still high and the cost of goods sold is up by 340 bps because of increase in input costs of detergents and soaps. The cost pressures were managed by aggressive savings programs and judicious pricing. The price hike in many products which was coupled by increase in personal products, soaps, food segments, etc have boosted the earnings. The detergents and soap revenue have seen a rise of 22% and reached Rs 2,592.55 crore. The revenue of the company from other business like the water and the chemical purifier business have seen a fall of Rs. 116.07 crore and decrease of 24% for the quarter. The excellent gains include, gains of 44.42 crore from the sale of properties.
Bell The Bull says: Rise in profits of the FMCG giant good sign for the earnings in the domestic market