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Our Bureau

Mumbai , Oct. 31

HINDUSTAN Lever Ltd (HLL) today reported a 15.18 per cent growth in profit after tax for the quarter ended September 30, 2005, to Rs 325.35 crore from the previous corresponding Rs 282.47 crore.

After providing for exceptional items, the same would however stand revised to a 0.50 per cent rise to Rs 325.96 crore (Rs 324.32 crore for the year ago period) given a mere Rs 0.61 crore (Rs 41.85 crore) as addition under exceptional item this time around.

Net sales for the quarter were up 13.76 per cent to Rs 2,731.54 crore (Rs 2,401.14 crore) including domestic FMCG sales of Rs 2,383.08 crore (Rs 2,056.66 crore). More than half of the turnover gain came from volume growth.

Domestic FMCG home and personal care (HPC) sales grew by 16 per cent to touch Rs 1,954.90 crore (Rs 1,683.85 crore) and that of foods by 15 per cent to Rs 428.18 crore (Rs 372.81 crore).

"A strong growth momentum delivered double digit growth in September Quarter 2005, both in HPC and Foods. In the highly competitive categories of laundry and hair wash, high growth has been accompanied by market share gains. A combination of high impact innovations, market activation, renewed distribution initiatives and significant brand investments are enabling us to win in the market place,'' the company said in a news release.

However, cost pressures continue to be a cause for concern going forward, though HLL has been able to partly neutralise it through cost reduction measures, Mr D. Sundaram, Director - Finance, HLL, said.

The company incurred a 21.93 per cent rise in advertisement and promotion (A&P) expenses to Rs 240.52 crore (Rs 197.27 crore). A&P expense was up 11.71 per cent for the year so far, at Rs 735.82 crore (Rs 658.71 crore). In A&P, the share of promotion is gradually coming down, Mr Sundaram said.

For the first three quarters of 2005, the company's profit after tax before exceptional items was up 5.08 per cent at Rs 884.53 crore (Rs 841.78 crore) and after exceptional items, down 0.68 per cent to Rs 857.85 crore (Rs 863.69 crore). Against accretion last year of Rs 21.91 crore under exceptional item, this fiscal there was deduction amounting to Rs 26.68 crore. At the same time, net sales increased by 10.21 per cent to Rs 8,074.24 crore (Rs 7,326.12 crore), with domestic FMCG sales at Rs 6,944.06 crore (Rs 6,217.58 crore).

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