HUL's profitability margin expands in Q1FY17

Hindustan Unilever (HUL) has declared its Q1FY17 results on July 18. The company’s revenue has increased by 2.3 per cent to Rs 8128 crore in Q1FY17 as compared to previous quarter. Its EBITDA too has been boosted by 11.52 per cent to Rs 1636 crore in Q1FY17 on a sequential basis. HUL’s EBITDA margin has expanded by 167 basis points to 20.13 per cent in Q1FY17 on a quarterly basis. The company’s net profit also has risen by 7.74 per cent to Rs 1174 crore in Q1FY17 as compared to previous quarter. Its net profit margin has expanded by 73 basis points to 14.44 per cent in Q1FY17 on a quarterly basis.

On yearly comparison front, HUL’s top line has increased by 0.28 per cent to Rs 8128 crore in Q1FY17. The company’s EBITDA has risen by 8.63 per cent to Rs 1506 crore in Q1FY17 as compared to same period in previous fiscal year. Its bottom line has increased by 10.84 per cent to Rs 1174 crore in Q1FY17 on a yearly basis. 

On segmental revenue front, HUL has earned 30.6 per cent from Home Care, 48.72 per cent from Personal Care, 3.26 per cent from Foods, 14.42 per cent from Refreshments and 3 per cent from others during Q1FY17.

HUL has proposed to make an investment of about Rs 1000 crore in Assam. The company is going to set up a new manufacturing unit in the existing vicinity of Doom Dooma, Assam. It will start the new unit in early 2017. HUL’s new capacity will enlarge its personal care products category.

The share price of HUL has decreased by 2.04 per cent on bourses; and closed at Rs 920.45 on an intraday basis.

HUL operates through five segments viz. Soaps and Detergents; Personal Products; Beverages; Packaged foods; and others. It owns some brands such as Dove, Lifebuoy, Surf, Kissan, Bru and Pureit, among others.