Hindustan Unilever reports higher Q1 profit on core segments revival
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Hindustan Unilever posted a higher first-quarter profit on Tuesday as a recovery in rural India helped with a revival of demand for the Dove shampoo-maker's core business.
The company, a unit of UK's Unilever, reported a 2.7% rise in profit to 25.38 billion rupees ($303.23 million) for the quarter ended June 30.
Analysts, on average, had expected a profit of 25.31 billion rupees, according to data from LSEG.
Indian consumer goods' sales began to rise in the three months ended March, with rural growth outpacing that in urban areas for the first time in five quarters.
Easing commodity prices aided volume growth for branded consumer goods giants.
For HUL, urban sales contributes 60% and rural contributes the rest, as of March quarter ended.
Hindustan Unilever's sales rose to 151.66 billion rupees in the first quarter, aided by 4.6% growth in its key home care segment. The segment houses products including Cif, Vim and Surf Excel.
Its shares closed 1.1% higher on Tuesday. It gained 9% in the June quarter, compared to a 5% gain in the Nifty fast-moving consumer goods index.
