HUL scrip falls nearly 4%; m-cap down Rs 5,059 crore post Q1 nos

Mumbai: Shares of FMCG major Hindustan Unilever on Friday fell by nearly 4 percent, eroding over Rs 5,000 crore of investor wealth, after the company reported 23.43 percent decline in standalone net profit for the first quarter ended June 30.

After falling 5.65 percent to Rs 647.70 in intra-day trade, the scrip finally ended at Rs 663.30, down 3.38 percent from its previous close on the BSE.

At NSE, the scrip lost 3.77 percent to settle at Rs 662.

Market value of the company tanked by Rs 5,059 crore to Rs 1,43,394 crore.

"HUL reported numbers were in-line with estimate. Q1 performance reflects the slowdown in personal products and processed foods category. Consumer demand has deteriorated sequentially, with disproportionate impact on discretionary and premium personal care and foods categories," said Rikesh Parikh, VP ? Equities, Motilal Oswal Securities Ltd.

Hindustan Unilever today reported 23.43 percent decline in standalone net profit at Rs 1,019.25 crore for the first quarter ended June 30 due to exceptional income generated in the same quarter last year from the sale of properties.

The company had reported standalone net profit of Rs 1,331.19 crore in the corresponding quarter a year ago.

HUL's net sales during the period under review increased 6.99 percent to Rs 6,687.49 crore in the quarter under review as against Rs 6,250.15 crore in the corresponding period last year, the company said in a statement.

Explaining the reasons for the decline in net profit, HUL said in the year-ago quarter it had an income of Rs 607.24 crore from exceptional items, which included sale of properties. For the same quarter this year, the credit from exceptional items was at Rs 106.25 crore.

During the quarter, revenue from soap and detergents increased by 7.33 percent to Rs 3,407.66 crore, while that from personal products increased by 1.96 percent to Rs 1,883.38 crore.

PTI