COMMENTARY
INTERVIEWS
SPECIALS
CHAT
ARCHIVES

HLL's net up 24 per cent to Rs 2.12 bn in Q1/1999

Hindustan Lever Limited has registered a net profit of Rs 2.12 billion in the first quarter of 1999, a growth of 24.2 per cent over the corresponding period of 1998.

Gross turnover during the three months ending March 31, 1999 at Rs 26.32 billion recorded a growth of 4.6 per cent.

Turnover (net of excise) during the first quarter was Rs 24.40 billion, reflecting an increase of 3.4 per cent over Rs 23.61 billion in the first quarter of 1998. Profit before tax at Rs 2.76 billion (1998 Rs 2.33 billion) has increased by 18.3 per cent while profit after tax at Rs 2.12 billion (1998 Rs 1.71 billion) has risen by 24.2 per cent.

The earnings per share (annualised) for Q1/1999 was Rs 38.77, representing a growth of 24.2 per cent over the EPS of Rs 31.22 for Q1/1998.

Announcing the results, HLL's chairman, K B Dadiseth, said volume growth and market development continue to be key areas of focus. The domestic business of soaps, detergents, personal products, culinary products, coffee, ice-creams, branded staples and oils and fats (67 per cent of total sales) have shown good sales growth during the first quarter of 1999.

This was achieved despite difficult economic conditions characterised by consumer downtrading. Export sales were depressed due to prevailing international trading conditions, particularly the difficulties in Russia.

The packet tea market continued to be affected by the impact of the discriminatory excise duty on branded packet tea weighing more than 100 grams. With the removal of this discriminatory duty in the recent finance bill, the competitiveness of the branded packet tea industry should be restored and the company can now get back to the growth path after pipeline stocks are cleared.

Commenting on the outlook for the year, Dadiseth said, "Rural incomes are expected to increase significantly with better agricultural output and this should stimulate demand for our category of products, particularly in the second half of 1999. However, political uncertainty continues to affect trade sentiment."

UNI

April 20, 1999: The RBI's Credit and Monetary Policy

Business news