MUMBAI, February 12: Hindustan Lever Ltd (HLL), in its first comparable financial results after its merger with erstwhile Brooke Bond Lipton India Ltd (BBLIL), has posted a 35.3 per cent rise in net profit to Rs 560.37 crore as against Rs 414.26 crore for the year ended December 1997. The board has recommended a final dividend of Rs 9.50 per share, thereby increasing the total dividend for the year to Rs 17 per share (170 per cent) as against Rs 12.50 last year.During the year under review, HLL's net sales registered 18.5 per cent growth to Rs 7,820 crore from Rs 6,600 crore. Gross turnover went up by 17.2 per cent to Rs 8,343 crore from Rs 7,120 crore last year. Similarly, operating profits recorded 26.7 per cent increase to Rs 759 crore from Rs 599 crore.
The HLL results were in complete contrast to the prevailing recessionary trend in the economy, industry observers said. The FMCG major managed to improve its margins. Net profit margins rose to 7.4 per cent from 5.2 per cent, while operating profitmargins increased marginally to 9.7 per cent from 9 per cent. The earnings per share (after exceptional items) rose by 35.3 per cent to Rs 28.14 per share as against its previous Rs 20.80. HLL managed to prune its interest burden sharply by 40.5 per cent to Rs 33.90 crore against Rs 57 crore. It has provided Rs 57.95 crore towards depreciation compared to Rs 55.26 crore.
HLL also put up a good show on the export front. Its export turnover (including subsidiaries) grew 25 per cent to Rs 1,152 crore compared to the national average growth of around 4 per cent. While the growth in its mainline soaps and detergents business has been 15 per cent in value terms, the company did not divulge volumes growth, which is said to have been the same as the previous year. Last year, HLL's soaps business grew by 9 per cent in volume terms, which was way ahead of the industry growth of 4-5 percent.
Copyright © 1998 Indian Express Newspapers (Bombay) Ltd.
