FMCG major Hindustan Unilever (HUL) announced on Monday a rise in second quarter profit of 8.14% to Rs 9.88 billion for the quarter ended Sept. 30, 2014 as compared to net profit Rs 9.14 billion in the same period last year. Market was expecting profit to come at Rs 9.9 billion.
Total income has increased by 10.83% to Rs 76.39 billion for the quarter ended Sept. 30, 2014 from Rs 68.93 billion in the year ago period.
During the quarter, the domestic consumer business grew at 10%, ahead of market, with 5% underlying volume growth. Operating margin came at 16.3%.
Commenting on results, Gaurang Kakkad, Religare Institutional Research, said, ''HUVR's Q2FY15 net sales/EBITDA/adj. PAT grew 10.6%/14.4%/8.1% with volume growth (5%) coming in line with estimates but margins a tad lower (16.6%). We maintain our EPS estimates while rolling over to a Dec'15 TP of Rs 660 (from a Sep'15 TP of Rs 615). We maintain our earnings estimates while rolling over to a Dec'15 TP of Rs 660. Maintain Sell.''
Meanwhile, Harsh Mehta, HDFC Securities said, ''HUL's 2QFY15 operating revenues grew 10.8% YoY to Rs 76.4 billion (marginally below est) led by 5% volume growth in the domestic consumer business. As we roll forward our earnings to FY17E, we raise our TP to Rs 735 (30x FY17E) from Rs 650. Retain Neutral.''
Prashant Kutty, research analyst, Emkay Global Financial Services, opined, ''Revenues marginally below estimates, but PAT growth muted - Revenues Rs 76.4bn, up 10.8% yoy. Expect double digit earnings growth for HUL over FY14-FY17E. Maintain Hold with revised price target of Rs 680 a share.''
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