FMCG major Hindustan Unilever Ltd (HUL) followed Nestle India, another major player in the business, to report strong growth in the fourth quarter ending March 31, 2021.
On Thursday (April 29), HUL declared its report card, registering a 13 per cent increase in consolidated net profit at ₹2,190 crore for the fourth quarter (Q4), riding mainly on strong volume growth.
The company had posted a consolidated net profit of ₹1,938 crore in the same period of the previous fiscal, HUL said in a regulatory filing. HUL’s consolidated total income stood at ₹12,542 crore, as against ₹12,235 crore in the year-ago period.
For fiscal 2020-21, the company said its consolidated net profit was at ₹7,999 crore, as compared to ₹6,756 crore in 2019-20, a growth of 18 per cent. Consolidated total income for FY21 was at ₹47,438 crore, as against ₹40,415 crore in FY20, the company said.
Last week, Nestle India, the makers of Maggi noodles, recorded a net profit of ₹602 crore, a 14.6 per cent growth in the last quarter (Q4), up from ₹525 crore during the same period last year.
Britannia Industries, India’s top biscuit brand, also declared its Q4 (Jan-March, 2021) results recently, reporting a consolidated profit of ₹360 crore, a 3.3 per cent drop in profit year-on-year, compared to ₹372 crore in the corresponding period of last fiscal.
HUL chairman and managing director Sanjiv Mehta said, “Our in-quarter performance was strong on both the top-line and bottom-line. Despite challenging times, in FY21 our business ecosystem has withstood the disruption and demonstrated agility and resilience across the value chain.”
He further said, “we have delivered on our multi-stakeholder business model. Our purpose-led brands and capabilities were further strengthened during the year and this positions us well to serve our consumers during this turbulent period.”
“The recent surge in COVID cases is of serious concern and ensuring safety and well being of people remains our top priority,” he said adding HUL would continue to work closely with governments, health authorities and its partners to support the needs of the society and the nation to overcome this adversity.
Analysts say that while the top Fast Moving Consumer Goods (FMCGs) have recorded profits, they are earnestly looking at a boost in rural demand, which will help revive sluggish growth in volumes and earnings.
(With inputs from agencies)