HUL told the stock exchange that its net sales increased by 13.21 per cent to Rs 11,966 crore in the quarter under review as against Rs 10,570 crore in the same period a year ago.
There was an increase in sales.
FMCG major Hindustan Unilever Limited (HUL) on Thursday said its cumulative net profit rose 10.7 per cent to Rs 2,100 crore in the first quarter of the current financial year ended June 2021. This growth was achieved due to the increase in sales despite the challenging conditions due to the COVID-19 pandemic.
The company had made a net profit of Rs 1,897 crore in the April-June quarter of the last financial year. HUL told the stock exchange that its net sales increased by 13.21 per cent to Rs 11,966 crore in the quarter under review as against Rs 10,570 crore in the same period a year ago. According to the company, HUL performed strongly amid challenging conditions due to the second wave of the COVID epidemic, with domestic consumer growth up 12 per cent and profit after tax by 10 per cent.
Demand expected to remain strong
The company said that its total expenditure in the first quarter of the financial year 2021-22 was Rs 9,546 crore. In the same period a year ago, this figure was Rs 8,324 crore. Sanjiv Mehta, CMD, HUL said, “In a challenging environment, we have shown strong performance in net profit and net income. Our performance in the quarter has been resilient and reflects our capabilities, the efficiency in our operations, the intrinsic strength of our portfolio.” Mehta further said that he remains optimistic about the recovery in demand. Home maintenance items, beauty products and personal care segments grew in double digits in the quarter under review.
Demand for consumer goods will remain good
According to a report, this quarter will be great for the FMCG sector. In a report published in CNBC, Motilal Oswal says that demand will remain in consumer goods and rural demand will play a major role in this. The brokerage firm also says that if the third wave of corona does not come in India, then there will be a tremendous increase in demand in the utility sector in the coming quarters of the current financial year. All companies will register at least 9 per cent growth on a yearly basis. For HUL too, sales growth was estimated at 9 per cent. ITC’s sales have been estimated to increase by about 28 percent.
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