Profits surge while sales disappoint for HUL

HUL's management has announced the Q4FY16 results for the company on Monday. The net sales figures reported have highlighted a growth at 3.4 percent during the quarter  compared to the corresponding quarter of the previous year. The domestic consumer business (FMCG & WATER) has grown at 3.6 percent. The net sales have grown by 4.2 percent for the financial year 2015-16, while the consumer business (FMCG & Water) has grown by 4.4 percent. 

The Operating profits (Profits from operations before other income , finance costs  and exceptional items)  for the quarter have grown by almost 10.6 percent  at Rs. 1379.30 cores  compared to the March quarter of 2015.The operating profits have grown by 9.9 percent and the net profits have grown by 7 percent at Rs. 1090 crores. 

The Profit after tax before exceptional items was reported at 1030.87 crores  reflecting a growth of 13.2 percent over the corresponding quarter of the previous year. The profit after tax for March quarter 2015 was reported at 910.88 crores.  The Profit after tax for the financial year 2015- 16 has grown at 6.1 percent. 

Management has highlighted the expansion in margins to the tune of 115 bps owing to lower input costs.  Beverages segment has registered consistent growth and has delivered the growth momentum.The management has declared a final dividend  of Rs. 9.50  for the financial year end March ,2016. With this the total dividends paid per share will be Rs. 16 per share as the company has already paid an interim dividend of Rs. 6.50 per share. The face value for the share is Rs. 1/- . The final dividends will be paid to shareholders on or after July 05,2016. 

The stock  traded with increased volatility in the intra day session and closed 1 percent down at 845.50, not before touching intra day highs of 869.  Sensex closed almost 1.8 percent higher by gaining 460 points on Monday.