Views on Hindustan Unilever Ltd 3QFY2014 results - Angel Broking

Mr. V. Srinivasan (Research Analyst - FMCG, Angel Broking) on Hindustan Unilever Ltd 3QFY2014 results:

"For 3QFY2014 HUL's results were better than estimates on the operating profit and bottom-line front. The company's top-line rose by 9.4% yoy to Rs. 7,038cr. Domestic consumer business rose by 10% yoy, with a volume growth of 4% yoy. Soaps and Detergents division posted a growth of 14.5% aided by healthy volume growth in the skin cleansing segment. Laundry segment too posted a healthy growth aided by premium categories. Personal products division posted a healthy growth of 12.5% aided by healthy growth skin care, oral and hair care segments. The relaunch of Fair & Lovely aided the growth in the skin care segment. Oral care segments posted healthy performance aided by double digit growth in both Pepsodent and Close up. Strong growth in Hair care segment was led by brands such as Dove and Sunsilk. Beverages division posted a growth of 7.2% aided by double digit growth in tea. OPM rose by 130bp yoy to 14.8% aided by higher gross margin ( up 113bp yoy) and lower employee costs. Adjusted Net Profit rose by 18.3% yoy to Rs. 1,039cr aided by higher operating profit and lower tax rate. We maintain a neutral rating on the stock."

Source : Equity Bulls

Keywords