Hindustan Lever Q1 net up 77 pc to Rs 443 crore

Mumbai, April 28: Hindustan Lever Ltd (HLL), country's leading consumer goods maker, today posted a net profit of Rs 442.86 crore for the quarter ended March 31, 2006 as compared to Rs 250.25 crore for the corresponding quarter of the previous fiscal, showing a jump of 77 per cent.

Announcing the results, the company said its total income is Rs 2867.41 crore for Q1 FY 2006 as against Rs 2581.02 crore in Q1 FY 2005. The profit also included a one-time gain of 2 billion rupees from the sale of its Nihar hair oil to Marico. Profit after tax(PAT) grew lower at 13.5 per cent as a one-off tax credit of Rs 37 crore in March Quarter'05, significantly reduced the tax charge in the base.

However, the results for the quarter are not comparable to those of March Quarter 2005 to the extent of integration of subsidiaries - (International Fisheries Ltd, Lipton India Exports Ltd, Merryweather Food Products Ltd, TOC Disinfectants Ltd, and Lever India Exports Ltd) with the Company, the demerger and subsequent disposal of Doom Dooma and TEI plantation divisions, and the amalgamation of Vashisti Detergents Ltd with the Company.

Segment wise, HPC(Heavy detergents powder&chemicals) business grew by 20 per cent with performance across all categories, while foods business grew by 11 per cent.

Commenting on the performance, Mr Harish Manwani, Chairman HLL said,''Growth momentum in FMCG (fast moving consumer goods) markets has sustained, and we continue to grow ahead of the market. We have registered robust sales growth across categories including in the highly competitive categories of laundry and shampoo. We remain on course in terms of strengthening our brand portfolio and improving our competitiveness in the market place. We will continue to judiciously use the levers of pricing, cost management and brand investment to sustain profitable growth.'' Replying to UNI, Mr D Sundaram, CFO of HLL said,''Input cost pressure continued during the quarter led by crude oil price escalation. ''The impact of selective price increased, while improved sales mix and cost savings resulted in a higher gross margin, he added.

In a fiercely competitively market context, Mr Sundaram continued, a large part of this margin increase was re-deployed in brand investments for driving sales growth. Advertising and Promotion spend for the quarter, therefore, was accelerated and recorded a 45 per cent increase, he said.

UNI