At a time when concern is rife that high inflation might lead to lower consumer spends, the country?s largest fast-moving consumer goods (FMCG) company, Hindustan Unilever Ltd (HUL), said it posted one of the highest quarterly sales in recent times, driven by an underlying volume growth of 8.3% and price growth of 9.7%.

HUL on Friday said it posted a 13% rise in net profit at Rs 558.18 crore for the quarter ended June 30, 2008 (the company?s second quarter), compared with Rs 493.08 crore for the same period last year. The company?s total income increased from Rs 3,508 crore to Rs 4,300 crore for the same quarter.

?Overall, consumer spending has gone up by 14% in urban India and 12% in rural parts of the country, aiding growth,? explained Harish Manwani, chairman, HUL. The company?s stock was up 1.91% to close at Rs 232.20 on lacklustre BSE on Friday.

Announcing the results, D Sundaram, vice-chairman of HUL, said: ?Our company?s net sales grew by 21%, driven by a strong 19% growth in FMCG business. Focused action on cost management, improved portfolio mix and judicious pricing helped mitigate the impact of steep cost inflation.?

The company also announced an interim dividend of 3.50 a share of Re 1 for a period of 15 months ending March 31, 2009. On HUL?s performance for the quarter, Akhil Kejriwl, an analyst with Enam Securities, said, ?It?s in line with our expectations. No surprises, although marketshare keeps declining year-on-year.?

During the quarter, the company?s spend on advertising & promotions increased 31%. Its home & personal care business expanded 20%, with strong growth in all categories. The company?s foods business grew 14% with underlying volume growth.

Added Manwani, ?Building on the strong start to the year, we have sustained the growth momentum in this quarter.?