Shares of the country's largest FMCG company, Hindustan Unilever, rose as much as 2.42 per cent to hit an intraday high of Rs 2,316 after it reported December quarter earnings post market hours on Thursday. Hindustan Unilever's net profit rose 19 per cent in December quarter to Rs 2,300 crore from Rs 1,938 crore. Its revenue from sales during the quarter came in at Rs 13,196 crore, up 10.25 per cent, as against Rs 11,969 crore in the corresponding period a year ago.
"Business fundamentals remained strong with handsome market share gains in all our divisions, both urban and rural markets and across price segments. Underlying Volume Growth at 2 per cent was significantly ahead of the market," Hindustan Unilever said in a post-earning statement.
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The company’s Chairman and managing Director Sanjiv Mehta said the company has delivered a strong and resilient performance in the quarter despite moderation in market growth and significant levels of commodity inflation.
"I am particularly pleased that the growth is extremely competitive with our market share gains being highest in more than a decade. Our performance is reflective of our strategic clarity, strength of our brands, operational excellence, and dynamic financial management of our business," he said.
However, he added that in the near-term, operating environment will continue to remain challenging.
"In this scenario, we will manage our business with agility, continue to grow our consumer franchise whilst maintaining our margins in a healthy range. 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," Mehta added.
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As of 11:31 am, Hindustan Unilever shares traded 1.64 per cent higher at Rs 2,299, outperforming the Nifty which was down 0.88 per cent.
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