HLL profit rises 23.4 pc in Q1

MUMBAI, APR 26: FMCG giant Hindustan Lever Ltd (HLL) has announced a 23.4 per cent rise in net profit to Rs 262.61 crore during the first ...

MUMBAI, APR 26: FMCG giant Hindustan Lever Ltd (HLL) has announced a 23.4 per cent rise in net profit to Rs 262.61 crore during the first quarter ended March 31, 2000, as compared to Rs 212.83 crore in the corresponding period last year. The company has reported a 7.09 per cent increase in turnover during the period to Rs 2,614.07 crore against Rs 2,440.94 crore last year. Earnings per share have gone up by 23.3 per cent to Rs 47.73 per share from Rs 38.77.

The company’s sales growth was led by home and personal care (up by eight per cent), beverages (32 per cent) and branded staples (28 per cent), HLL’s outgoing chairman K B Dadiseth, who hands over charge to M S Banga and proceeds to Unilever, London next month, said in a release here today.

HLL has estimated the business restructuring costs for year 2000 at Rs 120 crore, he said adding, on a proportionate basis, Rs 30 crore have been charged in the first quarter. The export business also showed a five per cent growth in difficult international trading conditions.

Story continues below this ad

“Acquiring of 74 per cent equity stake in Modern Food Industries Ltd in January has given the company a strategic entry into fresh product distribution and is in line with HLL’s vision of developing an integrated wheat flour business,” Dadiseth said.

Commenting on the results, Dadiseth said: “In sluggish market conditions, our domestic businesses of soaps and detergents, personal products, beverages and branded staples (75 per cent of total sales) have shown good sales growth. Ice cream and culinary sales were flat while the oils and fats sales realisation continued to be affected by the downward trend in prices of commodity oils.”