Hindustan Unilever's third quarter net profit down 1.8 per cent

MUMBAI: Fast moving consumer goods (FMCG) conglomerate Hindustan Unilever Limited (HUL) Tuesday reported a marginal decline of 1.8 per cent in its net profit for the third quarter of the current fiscal year as higher input costs brought down operating margins.

The company's net profit stood at Rs.637.51 crore in the third quarter as against Rs.649.11 crore in the like period last fiscal.

"Company has posted a net profit of Rs.6375.10 million for the quarter ended Dec 31, 2010, as compared to Rs.6491.10 million for the quarter ended Dec 31, 2009," HUL said in a regulatory filing.

Meanwhile, the total income of the conglomerate increased by 12.48 per cent to Rs.5,204.73 crore as compared to Rs.4,612.11 crore in the corresponding period of the fiscal 2009-10.

The company reported a 12 per cent growth in net sales during the third quarter and 13 per cent increase in volume of domestic consumer business.

"Our strategy is working and is reflected in the consistent double digit underlying volume growth over the last four quarters and ahead of market growth," HUL chairman Harish Manwani said.

Personal products business of the company grew by 20 per cent and was led by skin care, hair and oral products like Fair and Lovely cream, Dove hair range and Close-up toothpaste.

The home and personal care business reported a growth of 11.6 per cent, followed by food business at 11.3 per cent.

According to the company, to off-set the inflationary pressure on the input prices, it will focus on buying efficiencies and cost saving.

"In an inflationary environment, we will manage our business dynamical! ly, thro ugh judicious pricing actions and increased focus on cost effectiveness, while ensuring that we remain competitive in the market place," Manwani said.

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