HUL Q2 profit grows 17% to 807 crore FMCG Co’s Volume Growth Disappoints Pvt Lender Posts Robust Numbers

Mumbai: Driven by modern trade and a faster growing rural business, Hindustan Unilever (HUL) posted a 17% rise in net profit at Rs 807 crore for the second quarter ended September 30, 2012 as compared to Rs 689 crore in the corresponding quarter last year. However, overall growth was impacted by budget rationalization in the canteen stores department, which contributes about 7% to its turnover. 

    Volume growth of 7% disappointed the street and HUL's scrip fell about 2% to around Rs 552 on the BSE on Friday. The largest fast-moving consumer goods company said a slowdown in discretionary spending categories has had an impact on the volume growth. The volume growth in the preceding June quarter was 9%. 
    Net sales grew at 12% to Rs 6,155 crore as compared to Rs 5,516 crore last year, with the domestic consumer business sustaining its growth momentum at 16%. 
    The company said the operating context remained challenging during the quarter with a volatile cost environment and heightened competitive intensity. Overall, the industry's media spend was up significantly to its highest levels in over 15 quarters. A&P was stepped up and maintained at competitive levels, higher by Rs 118 crore or 18% during the quarter. 
    "In a volatile and uncertain environment, we continue to sustain our growth momentum while steadily improving our margins. Our consistent performance is being driven by a relentless focus on brand building, bigger and better innovations and disciplined execution in the marketplace," said Harish Manwani, HUL chairman & Unilever COO. 
    HUL's MD & CEO Nitin Paranjpe said rural markets have grown faster than urban and this has been one of the contributing factors for the company's performance along with a strong growth in modern trade. Earnings before interest, taxation, depreciation and amortization increased by 18% to Rs 970 crore as margins expanded 74 basis points to 15.5%. 
PNB Q2 net falls 12% as NPAs rise 
New Delhi: State-owned Punjab National Bank on Friday reported a 12% drop in net profit to Rs 1,065 crore on account of higher provisioning for bad loans in the September quarter, disappointing investors as its shares tanked about 7%. The PSU lender had a net profit of Rs 1,205 crore in the year-ago period. AGENCIES