Shares of Hindustan Unilever on Tuesday surged over seven percent, adding Rs 10,145 crore to its market capitalisation, after the FMCG major reported two-fold jump in net profit in the first quarter of the current fiscal.
Mumbai: Shares of Hindustan Unilever on Tuesday surged over seven percent, adding Rs 10,145 crore to its market capitalisation, after the FMCG major reported two-fold jump in net profit in the first quarter of the current fiscal.
Shares of the company jumped more than 7.91 percent to intra-day high of Rs 477.90 on BSE. At the end of the trading session the stock was quoted at Rs 476.05, higher by 7.50 percent on the BSE.
In the process, the market capitalisation of the company swelled to Rs 1,02,882 crore from Rs 92,737 crore yesterday.
HUL's net profit jumped more than two fold to Rs 1,331.19 crore in the June quarter of this year.
Market experts attributed the significant jump in HUL shares to robust Q2 earnings of the company.
The surge in profit was mainly due to an exceptional income of Rs 607 crore from sale of properties, they added.
Net sales of the company rose to Rs 6,250.15 crore for the April-June quarter of 2012-13, from to Rs 5,495.91 crore during the same period of previous fiscal.
"The environment continues to be challenging in terms of inflation and a general economic slowdown. In this context, we are implementing our strategy with even greater rigour and managing our business dynamically to remain competitive and cost efficient," HUL Chairman Harish Manwani said.
The broader 30-share benchmark index closed for the day almost flat at 16,918.08, higher by 40.73 points, driven by surge in HUL shares.