HUL

The FMCG company did very well.  In Q2FY12, the company had an exceptional income of Rs.44.42 crore and on that, it posted a net profit at Rs.689 crore. And in the current Q2, the exceptional income was just at Rs.1.58 crore, based purely on strong operational efficiencies; it posted a net profit at Rs.807 crore, up 17% on a YoY. And this was despite a 17.5% rise in raw material costs and 18% increase in advertising costs too.  The 12% increase in topline at Rs.6155 crore helped the overall performance.

Domestic Consumer business sustained its robust performance growing at 16% with underlying volume growth of 7%. The numbers would have been much better but for the overall growth in the quarter was impacted by the budget rationalization in the Canteen Stores Department (CSD). Personal Products grew 12%, Beverages grew 10%, Packaged Foods grew 10%. The good news is that that company has declared a Special Dividend of Rs.8 per share (Face Value of Re. 1 each) to be paid to its shareholders on record date as of 2-Nov-2012. The dividend will be paid to shareholders on or after 16-Nov-2012. The payment of Special Dividend will be made in addition to the Interim Dividend of Rs 4.5 per share for the year ending 31st March 2013. The company’s net profit for H1Fy13 was at Rs.2138 crore v/s Rs.2691 crore for 12MFY12. Clearly, with two more quarters to go, it will end the current fiscal on a much higher note!