By Rumman Ahmed
BANGALORE--Hindustan Unilever Ltd. (500696.BY) Tuesday scraped
past analysts' estimates with a 16% rise in its third-quarter net
profit, but it disappointed with a lower-than-expected sales
growth.
For the three months through December, Hindustan Unilever
clocked a net profit of 8.71 billion rupees ($163 million), up from
7.54 billion rupees a year earlier. The net profit was slightly
higher than the 8.69 billion rupees predicted in a Dow Jones
Newswires poll of eight analysts.
Sales rose 10% to 64.34 billion rupees from 58.44 billion
rupees, missing the 66.46 billion rupees estimated in the poll.
India's largest consumer goods maker by revenue had recorded a
moderation in sales in the previous quarter ended Sept. 30 as
consumers curtailed purchases in categories that involve
discretionary spending, such as packaged foods and personal-care
products.
The company -- a unit of U.K.-based Unilever PLC (UL) -- has a
wide distribution network that reaches thousands of supermarkets as
well as smaller shops across India. Its sales are widely seen as a
proxy for the strength of local consumer demand.
Hindustan Unilever's results come a few days after
cigarettes-to-hospitality company ITC Ltd. (500875.BY) exceeded
expectations with a 21% jump in its third-quarter net profit.
Hindustan Unilever's shares closed 2.9% lower at 481.55 rupees
for the day, after falling to as low as 465.30 rupees after the
results came out. The benchmark Sensex closed down 0.6% in
comparison.
Write to Rumman Ahmed at rumman.ahmed@dowjones.com
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